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You are given an annual time series with 40 consecutive values and asked to fit a fifth-order auto-regressive model.

a. How many comparisons are lost in the development of the auto-regressive model?

b. How many parameters do you need to estimate?

c. Which of the original 40 values do you need for forecasting?

d. State the fifth-order auto-regressive model.

e. Write an equation to indicate how you would forecast x years into the future.

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Statistics and Probability, Statistics

Category:- Statistics and Probability
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