Question

1 Given an ARIMA model of monthly data described by the menu (1,3,0)(2,2,0) how many data observations will be lost due to differencing to make the series stationary?

	a) 24
	b) 5
	c) 27
	d) 25
	e) 30 2 What is the test for model forecast reasonableness and why is it reasonable? a) A time series plot of the variable forecast only observing the variation. High variation is reasonable. b) A scatter plot of the original data with the X variable to see if it is linear. c) A time series plot of the residuals divided by the origonal data to observe the percentage changes over time. The lower the percentage change the more reasonable the forecast. d) A time series plot of the variable forecast appended to the original variable data. The forecast must be achievable.