Question

Mathematics

The AR§ model

A. can be written as

B. can be represented as follows:

C. is defined as

D. represents as a linear function of of its lagged values.

A. can be written as

B. can be represented as follows:

C. is defined as

D. represents

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Best Answer

Answer: D. represents as a linear function of of its lagged values.

Explanation:

The AR§ model stands for autoregressive model of lag p. In this model, the current value of depends on its past p values, along with an error term. It can be expressed mathematically as:

Explanation:

The AR§ model stands for autoregressive model of lag p. In this model, the current value of

where are the parameters to be estimated and are known as autoregression coefficients.

Option A is incorrect because it has only one lag term in the equation, whereas the AR§ model involves p lag terms.

Option B is incorrect because it has included an additional independent variable , which is not part of the AR§ model.

Option C is incorrect because it has no lagged term in the equation, whereas the AR§ model involves p lag terms.

Option A is incorrect because it has only one lag term

Option B is incorrect because it has included an additional independent variable

Option C is incorrect because it has no lagged term in the equation, whereas the AR§ model involves p lag terms.