Consider the Following Time Series A Construct a Time Series Plot

question 14

Essay

Consider the following time series. $$\begin{array} { | c | c | } \hline \boldsymbol { t } & \boldsymbol { y } \boldsymbol { t } \\\hline 1 & 1,234 \\\hline 2 & 1,201 \\\hline 3 & 1,103 \\\hline 4 & 987 \\\hline 5 & 945 \\\hline 6 & 891 \\\hline 7 & 817 \\\hline 8 & 734 \\\hline\end{array}$$
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 = 9?

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Definitions:

Transfer Programs

Government initiatives designed to redistribute wealth from certain groups of individuals to others, often aimed at reducing poverty or supporting specific demographics.

Income Inequality

The uneven distribution of income within a population, leading to disparities between the rich and the poor.

Pure Luck

Pure luck refers to outcomes that are entirely beyond one's control and happen by chance.

Transfer Payments

Money distributed from one entity to another without an exchange of goods or services, e.g., social security benefits.