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The Following Table Shows the Annual Revenues (In Millions of Dollars)

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The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.   The autoregressive models of order 1 and 2, y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + ε<sub>t</sub>, and y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + β<sub>2</sub>y<sub>t - 2</sub> + ε<sub>t</sub>, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below. Model AR(1):     Model AR(2):     Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better. The autoregressive models of order 1 and 2, yt = β0 + β1yt - 1 + εt, and yt = β0 + β1yt - 1 + β2yt - 2 + εt, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below.
Model AR(1): The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.   The autoregressive models of order 1 and 2, y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + ε<sub>t</sub>, and y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + β<sub>2</sub>y<sub>t - 2</sub> + ε<sub>t</sub>, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below. Model AR(1):     Model AR(2):     Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.   The autoregressive models of order 1 and 2, y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + ε<sub>t</sub>, and y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + β<sub>2</sub>y<sub>t - 2</sub> + ε<sub>t</sub>, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below. Model AR(1):     Model AR(2):     Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better. Model AR(2): The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.   The autoregressive models of order 1 and 2, y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + ε<sub>t</sub>, and y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + β<sub>2</sub>y<sub>t - 2</sub> + ε<sub>t</sub>, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below. Model AR(1):     Model AR(2):     Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.   The autoregressive models of order 1 and 2, y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + ε<sub>t</sub>, and y<sub>t</sub> = β<sub>0</sub> + β<sub>1</sub>y<sub>t - </sub><sub>1</sub> + β<sub>2</sub>y<sub>t - 2</sub> + ε<sub>t</sub>, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below. Model AR(1):     Model AR(2):     Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better. Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better.


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