An AR(2) model is fitted to time series INTEREST (interest rate). The least-squares estimation results and the residual correlogram are given above. Which statement is correct about the results? Select one: O a. The AR(2) model is not suitable, due to the evidence of autocorrelated error term The AR(2) model is suitable, due to little evidence of autocorrelated error term O c. The AR (2) model is not suitable, due to the evidence of heteroskedasticity O b.
An AR(2) model is fitted to time series INTEREST (interest rate). The least-squares estimation results and the residual correlogram are given above. Which statement is correct about the results? Select one: O a. The AR(2) model is not suitable, due to the evidence of autocorrelated error term The AR(2) model is suitable, due to little evidence of autocorrelated error term O c. The AR (2) model is not suitable, due to the evidence of heteroskedasticity O b.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 1.2CE: Plot the logarithm of arrivals for each transportation mode against time, all on the same graph....
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