Question: Consider a monthly return data on 20-year Treasury Bonds from 2006-2010. Year 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2007
Consider a monthly return data on 20-year Treasury Bonds from 2006-2010. Year 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Return 3.13 4.15 3.18 4.94 4.34 4.19 5.12 5.26 3.81 3.10 3.87 4.89 3.94 3.42 4.13 3.54 4.58 4.19 4.62 3.89 3.62 3.92 4.46 3.23 4.78 4.71 5.05 3.46 3.15 4.82 Year 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Return 3.87 3.78 3.22 5.39 4.78 5.50 4.80 5.20 3.82 4.52 3.53 4.66 5.46 3.49 3.75 4.84 4.83 4.35 4.63 5.32 4.75 3.28 4.80 3.21 4.40 3.31 4.81 5.40 3.54 4.48 Click here for the Excel Data File Estimate a linear trend model with seasonal dummy variables to make forecasts for the first three months of 2011. (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.) Year Month 2011 Jan 2011 Feb 2011 Mar
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