Questions on Statistical Forecasting

You are given an annual time series with 40 consecutive

values and asked to fit a fifth-order auto-regressive model

a How many comparisons are lost in the development of the

auto-regressive model?

b How many parameters do you need to estimate?

c Which of the original 40 values do you need for

forecasting?

d State the fifth-order auto-regressive model

e Write an equation to indicate how you would forecast x

years into the future