Empirical homework assignment 1

The data for the homework assignment is available in EasyReg space delimited text format (*) and in Excel CSV format (**). You may treat the time series involved as an annual time series, starting from year 1. This time series is an artificially generated stationary ARMA process.

Figure out how this time series was generated, and report how you have determined the most parsimoneous model for this data.

Remark

If you are going to use EasyReg for this exercise, upgrade it first to the latest version. The procedure for importing these files in EasyReg is explained in EASYREG.PDF.

Notes

(*) Click on the link, and save the file as a text file (with extention *.TXT) on your hard disk via the "Save as .." option of your web browser.

(**) If you use Internet Explorer and you click on the link the file will be automatically imported in Excel, provided of course that you have installed Excel on your computer. Then use the "Save as .." option of Excel to save the file on your hard disk. Netscape and Mozilla Firefox will display and save the file as a text file. Therefore, if you use Netscape or Mozilla Firefox, follow the procedure under (*), and rename the file as INPUT1.CSV if it is saved with extention ".TXT".