Identify and estimate appropriate ARIMA models for the two series

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Identify and estimate appropriate ARIMA models for the two series given in the Final Exam data set for problem 5. Check how well your ARIMA models perform by comparing their pseudo-out-of-sample forecasts against the appropriate naive forecast. Provide a chart showing the data, _fitted values, confidence interval and true out-of-sample forecasts for 12 months for both series.

 

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