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Auto-Correlation

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The problem is: Vernon wants to use excel to compute autocorrelation coefficients and correlogram for the data presented. This example was manually copied from the book and formulas were not entered.
I need assistance in writing a memo BRIEFLY EXPLAINING the results of the attached example (findings, I.E., GRAPH, LAG, ACF, CORRELATION).

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Solution Summary

The problem is: Vernon wants to use excel to compute autocorrelation coefficients and correlogram for the data presented. This example was manually copied from the book and formulas were not entered.
I need assistance in writing a memo BRIEFLY EXPLAINING the results of the attached example (findings, I.E., GRAPH, LAG, ACF, CORRELATION).

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Please refer to the attachment.
<br>
<br>Autocorrelation is an important guide to the properties of a time series, which is provided by a series of quantities called autocorrelation coefficients. These coefficients measure correlation between observations at different time periods.
<br>(They often provide insights into the probability model that generates the data.)
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<br>I then ran a regression of Yt on Lag1 and Lag2, the report is attached in the EXCEL.
<br>We notice a high F value = 7.4, which means that the Lag1 and Lag2 "jointly" help to explain Yt. (although we notice low t-values of Lag1 ...

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