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    Time Series and Forecasting

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    A). Predict the average price of bread for the next 3 months (time = 205,206,207).

    b). Test the significance of the slope for this model.

    c). Is the graph consistent with the results of your hypothesis test? Explain why or why not.

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    Ex. 16.21
    The Bureau of Labor Statistics (BLS) reports data on commodity prices on a monthly basis. These data are reported on a regional and national basis. The following graph displays the monthly average price (cents per pound) of white bread in the U.S. for the years 1980-1996.

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    1 15 29 43 57 71 85 99 113 ...

    Solution Summary

    The average price of bread for the next three months are predicted. The expert tests the significance of the slope for the model.

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