Question 13.74

13.74 U.S. poverty rate, continued.

Continue the analysis of the annual U.S. poverty rate.

poverty

  1. Produce a PACF for the series. If a lag only based model were to be fit, how many lags does the PACF suggest?
  2. Based on the PACF from part (a), fit a lag only based model. Report the estimated model.
  3. Test the randomness of the residuals. What do you find? What is the implication on the fitted model?
  4. Based on the fitted model from part (b), provide a forecast for the poverty rate for 2013.