Question: Scenario: Our data table called MCD contains daily share prices for McDonalds common stock for the first six months of 2009. The Daily Close column

Scenario: Our data table called MCD contains daily share prices for McDonald’s common stock for the first six months of 2009. The Daily Close column is the price of one share of stock on any given day.

a. Create a time series plot of the Daily Close column. Looking at this series, which time series modeling method or methods seem particularly inappropriate? Explain.

b. Develop a time series model for the daily closing price and forecast the next five days beyond the series. Report on your choice of a model.

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