The Below Time Series Gives the Indices of Industrial Production

question 5

Essay

The below time series gives the indices of Industrial Production in U.S for 10 consecutive years.
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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Definitions:

Medical Insurance Deductions

Amounts deducted from an employee's paycheck to cover health insurance premiums, typically part of an employer's benefits package.

FICA Taxes Payable

Amounts owed by employers for their portion of Social Security and Medicare taxes, required to be remitted to the government.

Employer's Payroll Taxes

Employer's Payroll Taxes are taxes that employers are required to pay on behalf of their employees, which can include Social Security, Medicare, and unemployment taxes.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state unemployment insurance programs.