- 2 Suppose That Annual Profit Of The U Of R Statistical Consulting Center Follows The Ar 2 Model Y 5 1 14 1 0 5y 2 1 (85.06 KiB) Viewed 62 times
2. Suppose that annual profit of the U of R Statistical Consulting Center follows the AR(2) model Y = 5 + 1.14-1-0.5Y+-2
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2. Suppose that annual profit of the U of R Statistical Consulting Center follows the AR(2) model Y = 5 + 1.14-1-0.5Y+-2
2. Suppose that annual profit of the U of R Statistical Consulting Center follows the AR(2) model Y = 5 + 1.14-1-0.5Y+-2 + et t = with o2 = 2. (a) If profits for 2018, 2019, and 2020 were $9.05, $11.17, and $10.01, respectively, forecast profits for 2021 and 2022. (b) Show that y1 1.1 for this model. (c) Calculate 95% prediction limits for your forecast in part (a) for 2021. (d) If profit in 2021 turn out to be $12, update your forecast for 2022.