We try to predict the unemployment (unem) with an AR(1) model and VAR(1) (unemployment and inflation). Figure 1 shows the predication results based on AR(1) and the Figure 2 shows that for VAR(1). The RMSE andMAE for AR(1) are 0.48 and 0.54, while those for VAR(1) are 0.58 and 0.52. Which one of the following statements is correct:10civilian unemployment rate, %аммиum1950O b.O c.O d.19601950numTrue unemployment rate before 1996Confidence intervalTrue unemployment rate after 1996197019801948 through 20031960197019801948 through 2003True unemployment rate before 1996-Confidence intervalTrue unemployment rate after 19961990AR(1) performs better than VAR(1) because it has smaller RMSEVAR(1) performs better than AR(1) because it has smaller MAEWe cannot tell which one performs betterForecast based on AR(1)Confidence interval199020002000We try to predict the unemployment (unem) with an AR(1) model and VAR(1) (unemployment and inflation). Figure 1 shows the predication results based on AR(1) and Figure 2 shows that for VAR(1). The RMSE and MAEfor AR(1) are 0.48 and 0.54, while those for VAR(1) are 0.58 and 0.52. Which one of the following statements is correct:Select one:O a. VAR(1) performs better than AR(1), because it contains additional information of inflation.Forecast based on VAR(1)Confidence interval

Unemployment refers to a situation and in general is a social-evil for every economy. It implies the…

We try to predict the unemployment (unem) with an AR(1) model and VAR(1) (unemployment and inflation). Figure 1 shows the predication results based on AR(1) and Figure 2 shows that for VAR(1). The RMSE and MAE for AR(1) are 0.48 and 0.54, while those for VAR(1) are 0.58 and 0.52. Which one of the following statements is correct: Select one: O a. VAR(1) performs better than AR(1), because it contains additional information of inflation. O b. AR(1) performs better than VAR(1) because it has smaller RMSE O c. VAR(1) performs better than AR(1) because it has smaller MAE O d. We cannot tell which one performs better

We try to predict the unemployment (unem) with an AR(1) model and VAR(1) (unemployment and inflation). Figure 1 shows the predication results based on AR(1) and Figure 2 shows that for VAR(1). The RMSE and MAE for AR(1) are 0.48 and 0.54, while those for VAR(1) are 0.58 and 0.52. Which one of the following statements is correct: Select one: O a. VAR(1) performs better than AR(1), because it contains additional information of inflation. O b. AR(1) performs better than VAR(1) because it has smaller RMSE O c. VAR(1) performs better than AR(1) because it has smaller MAE O d. We cannot tell which one performs better

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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