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Consider the following time series. t 1 2 3 4 5 yt 6 10 8 13 15
(a) Choose the correct time series plot. (i) (ii) (iii) (iv) 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. If required, round your answers to two decimal places. y-intercept, b0 = 4.1 Slope, b1 = 2.1 MSE = ????
(c) What is the forecast for t = 6? If required, round your answer to one decimal place. 16.7 I know how to do it all but the MSE.

Answer :

Fichohgo

Answer:

Kindly check explanation

Step-by-step explanation:

Given the data :

t __1 2 3 4 5

yt_ 6 10 8 13 15

Using technology to produce a linear model :

The linear model obtained shows a positive linear pattern exist for the time series data :

The parameters for the line that minimizes MSE for the then series is :

y = 2.1t + 4.1

Where, slope = 2.1 ; intercept = 4.1

The mean squared error :

Sum of squared estimate of error = 9.1

Mean squared error = √9.1

Mean squared error = 3.02

Forecast for t = 6

y = 2.1t + 4.1

y = 2.1*6 + 4.1

y = 12.6 + 4.1

y = 16.7

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