Below you are given some values of a time series consisting of 26 time periods. The estimated regression equation for these data is Y_t = 16.23 + .52Y_t-1 + .37Y_t-2
The forecasted value for time period 27 is

Question

Below you are given some values of a time series consisting of 26 time periods.

The estimated regression equation for these data is Y_t = 16.23 + .52Y_t-1 + .37Y_t-2
The forecasted value for time period 27 is

Quizplus · Accepted Answer

To find the forecasted value for time period 27, we need to substitute t=27 in the estimated regression equation. Y_t = 16.23 + .52Y_t-1 + .37Y_t-2 Y₂₇ = 16.23 + .52Y₂₆ + .37Y₂₅ Using the given values, we can iterate backwards to find the required values of Y_t-1 and Y_t-2: Y₂₆ = 116 Y₂₅ = 108 Now we can substitute these values in the above equation to get: Y₂₇ = 16.23 + .52(116) + .37(108) = 116.95 Therefore, the best choice is D.

Below You Are Given Some Values of a Time Series