6. (10 points) Consider the IMA (1, 1) model with yt = yt-1…
6. (10 points) Consider the IMA (1, 1) model with yt = yt-1 +εt – 0.4 εt-1. Suppose that the current observation is yt =110 and the forecast made for this time period one period prior is 105. What is the forecast for period t + 1?