Question: Q 1 . Copy and paste the code as follows. set.seed ( 2 0 0 ) install.packages ( tseries ) #Only if you

Q1. Copy and paste the code as follows.
set.seed(200)
install.packages("tseries") #Only if you have not already installed
require(tseries)
rwalk1= c(cumsum(rnorm(203)))
rwalk1.ts = ts(rwalk1)
rwalk2= c(cumsum(rnorm(203)))
rwalk2.ts = ts(rwalk2)
#use the seqplot from tseries package
seqplot.ts(rwalk1.ts, rwalk2.ts)
data.frame(day=rep(1:7,29),rwalk1.ts=rwalk1.ts, rwalk2.ts=rwalk2.ts)
a. Save the results into data.frame object and store it in your PC.(1)
b. Comment on the stationarity of the two series using plots. Also, explain the possible models that can be applied on the series. (1)
c. Run a regression and test the relationship between the dependent variable rwalk1.ts and the independent variable rwalk2.ts.(3)
d. To check for stationarity, apply the unit root tests, only Ljung-Box, Box-Pierce, and Augmented Dickey-Fuller. (5)
e. What is the order of integration in this series. (1)
Q2. Suppose the data generated above is of growth in sales. Use the time series generated above and generate 1-day ahead forecast using the Time Series Additive Model. Explain each step in details. (7)
Q3. Describe the assumptions of the Linear Regression Model. (2)

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