FIN 271 DR. R. SOYERFALL 201"Assignment 3PART I:Quarterly growth rate of GNPIn this assignment we will be interested in modeling quarterly growth rate of the U.S.GNP. The series is seasonally adjusted and it is for the period of 1947 Quarter 2 to 1991Quarter 1. The time-series data is available in Blackboard under file "GNP_Quarterly.TXT".(a) Look at the plot of the time-series and its sample autocorrelation function. Discusswhy the series look stationary.(b) By looking at both the autocorrelation and the partial autocorrelation functions ofthe series identify an autoregressive (AR) process to model the quarterly growth rate of GNP.In so doing, discuss your reasoning.(c) Estimate the AR process whose order you have identified in part (b), write downthe estimated model (using the relevant coefficients of the AR process) and discuss whetherthe coeeficients are statistically significant.(d) Discuss whether the residuals of the estimated AR model are white noise. In so
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