Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

This question requires you to use the dataset, us_change that contains information on percentage changes in quarterly personal consumption expenditure, savings and a few other variables. Your task is to forecast Consumption based on Savings. You will use the dynamic regression approach (regression with additional ARIMA errors) to predict Consumption for the next 10 quarters. After estimating the regression model, when making predictions, assume that the future percentage changes in savings is 2 % . Evaluate the model.