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Exercise 15 You have estimated an AR(4) process for a demand data series as follows: d = 40 + 0.5d1-1 - 0.2d4-2 +0.1d1-4 +Et
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Answer #1

The next period is t-10.

So,

Demand for t-10 = 40 + .5*54 - .2*48 + .1*44

Demand for t-10 = 61.8 or 62

So, demand for the period t-10 is 61.8 or 62 .

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