Question: A question on Producing forecasts for the next four days. see below for details pls fYou are given the following data for time up to

 A question on Producing forecasts for the next four days. see

A question on Producing forecasts for the next four days. see below for details pls

below for details pls \fYou are given the following data for timeup to day T (i.e. #=T) yT = 0.31; yT_1 = 0.02

\fYou are given the following data for time up to day T (i.e. #=T) yT = 0.31; yT_1 = 0.02 ; VT-2 = 0.16 87 = 0.02 ; 87_1 = 0.13; 8,_2 = 0.19 (a) Produce forecasts for the next four days (i.e. for times 7+1, 7+2, 7+3, 7+4) from both models. (10 marks) (b) Suppose that the actual values of the series y on days 7+1, 7+2, T+3, 7+4 turned out to be 0.62, 0.19,-0.32, 0.72, respectively. For each model calculate the Mean Squared Error (MSE) and determine which model produced the most accurate forecasts. Discuss your results. (10 marks)

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