Question 95
Consider the following estimated time series model: $x_t = -6.0 + 1.1x_{t-1} + 0.3x_{t-2} + \varepsilon_t$. This model is estimated over 50 periods. The value of the time series for the 49th observation is 20 and the value of the time series for the 50th observation is 22. What is the out-of-sample forecast for the 52nd observation?