present your chosen model along with at least two other potentially competing models

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

1. For this exercise, use the data on variable y in HW6DATA.xlsx posted with the homework and EViews. a. Your first task is to apply the Box-Jenkins methodology of model selection - via identification, estimation and diagnostic checking - on this data. Use the data for the period 2000:3 – 2018:12 for this purpose. Present your chosen model along with at least two other potentially competing models. Explain why you consider the model you chose is the best one. b. Make a forecast based on your chosen model for the period 2019:1- 2019:12. Present your forecasts, along with the 90% forecast intervals. c. Provide an appropriate plot of your forecasts and forecast-intervals along with the actual values of y

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