Consider the following ARMA model for{y,}:PΣa+E +bj=11=1where {e } is the residual.Which of the following assumption(s) on the residuals {ɛ } is needed to enable forecasting with this model in practice?O a. e is normally distributed.Ob.e is mean-independent of y,1,-2"*and e1-1'C.and eare stochastically independent for all +s:O d. All of the above.QUESTION 2How can the validity of the assumption(s) identified in Question 1 be examined in practice?O a. Use the Breusch-Pagan test, where the null hypothesis is that the distribution is normal.b.Use the Ljung-Box test, where the null hypothesis is that the first K autocorrelations are zero.Examine the SACF and SPACF of the estimated residualsd. Both (b) and (c).

Given the ARMA model for yt : yt=a0+∑j=1pajyt-j+εt+∑l=1qblyt-l where εt is the residual.

Answered: Consider the following ARMA model for…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose the following regression equation was generated from the sample data of 50 cities relating number of cigarette packs sold per 1000 residents in one week to tax in dollars on one pack of cigarettes and if smoking is allowed in bars: PACKS, 58803.462982-1005.438507TAX, +284.030008BARS, + BARS, 1 if city / allows smoking in bars and BARS,= 0 if city i does not allow smoking in bars. This equation has an R² value of 0.305162, and the coefficient of BARS, has a value of 0,088136. Which of the following conclusions is valid? Answer Keypad Keyboard Shortcuts m Tables O If there is no cigarette tax in a city that allows smoking in bars, the approximate number of cigarette packs sold per 1000 people is 58803. O According to the regression equation, cities that allow smoking in bars have lower cigarette sales than cities that do not allow smoking in bars. O More than half of the variation in cigarette sales is explained by cigarette taxes and whether or not a city allows smoking in bars.…
I want to solve this. Help me plz.
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