In sample and Out Sample Forecasting

For econometric discussions not necessarily related to EViews.

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brianaus86
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Joined: Sun Apr 07, 2013 11:39 pm

In sample and Out Sample Forecasting

Postby brianaus86 » Sun Apr 07, 2013 11:49 pm

Hi there,

I am confusing about when to use in sample and out of sample forecasting in Eviews.
Assuming that, I already have a fitted line with my data (Real GDP, 1950 - 2000, annually), as the equation is: GDP = c + b (Time).
The tutor told me that we need to use in-sample forecasting from 1991 to 2000.
I am confuse WHY we need to use in sample forecasting, when we already have the fitted line?
Thanks,

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