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Appling univariate model to forecast

Appling univariate model to forecast - Stata Tutorial

From the course: Data, Economic Modeling, and Forecasting with Stata

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Appling univariate model to forecast

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- [Instructor] You can now see that multivariate regression output and now's the time to take the coefficients and the independent variables and put them together in equations to forecast future aluminum prices. This all begins with the equation for a multi-variate linear model where aluminum prices three months in the future are a function of both Chinese Manufacturing and Eurozone Manufacturing. Econometrically, this is Y equals beta naught plus beta one X one plus beta two X two. In our output, the beta naught is the intercept at minus 3025.54. Beta one is the coefficient at 81.74 that's for the Chinese PMI. Beta two is the coefficient for the Eurozone PMI at 16.25. The equation for forecasting thus would be Y equals minus 3025.54 plus that beta one times X one plus 16.25 beta two times X two. Let's now consider another hypothetical example where the Chinese Manufacturing PMI is still at 55 but…

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