nformation: a) Explain what the time series is likely to look like (i.e., cyclical, seasonal, with a trend). b) Explain what is the predicted GDP value for Q4, 2021?
nformation: a) Explain what the time series is likely to look like (i.e., cyclical, seasonal, with a trend). b) Explain what is the predicted GDP value for Q4, 2021?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 2
The below output shows the results of an ARIMA model which was fitted to a time-series
data of Japan's GDP, and an excerpt of the data. Based on the below model and
information:
a) Explain what the time series is likely to look like (i.e., cyclical, seasonal, with a trend).
b) Explain what is the predicted GDP value for Q4, 2021?
Quarter, Year GDP (in trillions of dollars)
5.5
6.5
7.0
Q1, 2021
Q2, 2021
Q3, 2021
## Series: GDP
## Model: ARIMA(1,1,0)
## Coefficients:
##
#
ar1 constant
0.5 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e835388-b94b-4b6e-a581-7ce57d56eafd%2F165472c4-9b7c-46c0-a85b-25558ac8402f%2Fhts30c_processed.png&w=3840&q=75)
Transcribed Image Text:Question 2
The below output shows the results of an ARIMA model which was fitted to a time-series
data of Japan's GDP, and an excerpt of the data. Based on the below model and
information:
a) Explain what the time series is likely to look like (i.e., cyclical, seasonal, with a trend).
b) Explain what is the predicted GDP value for Q4, 2021?
Quarter, Year GDP (in trillions of dollars)
5.5
6.5
7.0
Q1, 2021
Q2, 2021
Q3, 2021
## Series: GDP
## Model: ARIMA(1,1,0)
## Coefficients:
##
#
ar1 constant
0.5 3
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