Continue the analysis of MLB batting averages from Exercise 13.40.
mlb
Use software to fit a simple linear regression model, using as the response variable and as the explanatory variable. Record the estimated regression equation.
Obtain the residuals from the AR(1) fit and make a time series plot of the residuals. Do the residuals appear random?
Test the residuals for randomness with an ACF. Does it appear that the autocorrelation has been accounted for? Explain.
Use the fitted AR(1) model from part (a) to obtain forecasts for batting averages in 2014 and 2015.