A time series model has been fit and checked with historical data yielding Yt = 50 +

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A time series model has been fit and checked with historical data yielding

Yt = 50 + 0.45Yt-1 + Ɛt

Suppose at time t = 60 the observation is Y60 = 57.

A. determine forecasts for periods 61, 62, and 63 from origin 60.

B. suppose the observed value of Y61 is 59. Update the forecast for periods 62 and 63.

C. Suppose the estimate for the variance of the error term is s^2 = 3.2. Compute a 95% prediction interval about the forecast for period 61. Please answer ALL parts to this question and show work.

Related Book For answer-question

Business Forecasting

ISBN: 978-0132301206

9th edition

Authors: John E. Hanke, Dean Wichern

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Posted Date: Jan 02, 2019 12:14 AM

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A time series model has been fit and checked with historical data yielding Yt = 50 +

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A Since we know that expected value of the error component is alwa... View the full answer

Business Forecasting

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