Question

Consider the following time series.

t	1	2	3	4	5
yt	5	10	10	15	14

(a)

Choose the correct time series plot.

(i)		(ii)
(iii)		(iv)

- Select your answer -Plot (i)Plot (ii)Plot (iii)Plot (iv)Item 1

What type of pattern exists in the data?

- Select your answer -Positive trend patternHorizontal stationary patternVertical stationary patternNegative trend patternItem 2

(b)

Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series.

If required, round your answers to two decimal places.

y-intercept, b₀ =

Slope, b₁ =

MSE =

(c)

What is the forecast for t = 6?

If required, round your answer to one decimal place.

Answer 1