Chapter 16, Problem 30PS

Using the average baseball salary from 2000 through 2013 data for Problem 16.18 on page 646 (stored in BBSalaries),

a. fit a third-order autoregressive model to the average baseball salary and test for the significance of the third-order autoregressive parameter. $\text{(Use }\alpha =\mathrm{0.05.})$

b. if necessary, fit a second-order autoregressive model to the average baseball salary and test for the significance of the second-order autoregressive parameter. $\text{(Use }\alpha =\mathrm{0.05.})$

c. if necessary, fit a first-order autoregressive model to the average baseball salary and test for the significance of the first order autoregressive parameter. $\text{(Use }\alpha =\mathrm{0.05.})$

d. forecast the average baseball salary for 2014.