EViews.com

I'm trying to forecast out-of-sample for my dependent variable using my exogeneous variables.

I don't have data for my dependent variable for the forecasting period, but I do my exogeneous are available for the forecasting period. Currently my dependent variable is NA for the forecasting period.

When I have the Forecast box up, I have the following options:

Forecast Equation: 'Ignore Formulae within Series' or 'Substitute Formulae within Series'

Series to Forecast:
PRODDAYS or PRODDAYS/PRODDAYS_SF

The following is my estimation equation:

• Estimation Equation:
  ============================
  PRODDAYS/PRODDAYS_SF = C(1) + C(2)*TREND + C(3)*MARGIN(-1)
  
  Substituted Series Formula
  ============================
  (PROD/DAYS)/PRODDAYS_SF = C(1) + C(2)*TREND + C(3)*(PRICE(-1)-0.5*COST1(-1)

I'm not sure what I should put as my Forecast sample and if I should check Insert actuals for out-of-sample observations

What should I specify in my Forecast options given my estimation equation?

Let's say my sample is from 2006m01 2013m06. I'm trying to forecast for 2013m07 to 2014m06.

Any help is appreciated!

Enter: in the forecast sample box.

Checking or not checking Insert Actuals will not affect the forecasted values.

Thanks for your reply.

When I do that, it says 'Unable to compute due to missing data'.

Does this have anything to do with my seasonality factor (which is not available in the forecasting period) or lagged explanatory variable?

Yes.

Am I not able to forecast or how do I overcome this?

If your dependent variable depends on other variables, then you will be unable to forecast that variable without having data for the explanatory variables.

Got it. I ended up just copying the previous year's seasonality factor for the forecast period and it worked.

Thanks!!