suppose that the price of sugar this month is 20 cents per pound. what price per pound does the ar(1) model forecast for sugar for next month? in r
main.r
# Define the price of sugar this month and the ar(1) modelprice_this_month <- 0.20
model_ar1 <- arima(price_this_month, order = c(1, 0, 0))
# Forecast the price of sugar for next month using the ar(1) modelforecast_next_month <- predict(model_ar1, n.ahead = 1)$pred
# View the forecasted price per pound for next monthprint(forecast_next_month)
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This code defines the price of sugar this month as 20 cents per pound, creates an AR(1) model, and then forecasts the price for the next month using the model.