The Below Time Series Gives the Indices of Industrial Production

question 47

Essay

The below time series gives the indices of Industrial Production in U.S for 10 consecutive years. $$\begin{array} { | c | c | } \hline \text { Year } & \text { IP } \\\hline 1 & 79.62 \\\hline 2 & 86.54 \\\hline 3 & 88.14 \\\hline 4 & 89.23 \\\hline 5 & 93.45 \\\hline 6 & 97.4 \\\hline 7 & 99.34 \\\hline 8 & 96.98 \\\hline 9 & 100.22 \\\hline 10 & 103.56 \\\hline\end{array}$$
a. Construct a time series plot. What type of pattern exists in the data?
b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series.
c. What is the forecast for t = 11?

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