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Question: Tables 14.4.9 and 14.4.10 show basic computer results from a Box-Jenkins analysis of yields on 3-month U.S. Treasury bills each year from 1970 through 2009.
a. What kind of process has been fitted?
b. Write the model in a way that shows how the next observation is determined from the previous one.
c. Which estimated coefficients are statistically significant?
d. Draw a time-series plot of the original data, the forecasts, and the forecast limits.
e. Comment on these forecasts and forecast limits.
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