QUESTION 1 Consider the following ARMA model for {y,}: ',=a,+ 2 j=1 +E,+ l=1 where {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. O b. e, is mean-independent of y,-1,-2"** and e,-1€,-2"**** and e are stochastically independent for all + s- O d. All of the above. QUESTION 2 How 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. O B- Use the Ljung-Box test, where the null hypothesis is that the first K autocorrelations are zero. O C. Examine the SACF and SPACF of the estimated residuals O d. Both (b) and (c).
QUESTION 1 Consider the following ARMA model for {y,}: ',=a,+ 2 j=1 +E,+ l=1 where {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. O b. e, is mean-independent of y,-1,-2"** and e,-1€,-2"**** and e are stochastically independent for all + s- O d. All of the above. QUESTION 2 How 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. O B- Use the Ljung-Box test, where the null hypothesis is that the first K autocorrelations are zero. O C. Examine the SACF and SPACF of the estimated residuals O d. Both (b) and (c).
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.2: The Least Square Line
Problem 8E
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