Obtain the corresponding autoregressive representation of the processes yt = 1.2 + 0.84t1 + t yt =
Question:
yt = 1.2 + 0.84εt–1 + εt
yt = 1.2+ 1.25 εt–1 + εt–1
Based on these representations, which process do you prefer for forecasting purposes'.' Explain.
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The process y t 1 2 0 8 t 1 t can be written as y t 1 2 1 0 8 L t which implies tha...View the full answer
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Related Book For
Forecasting for Economics and Business
ISBN: 978-0131474932
1st edition
Authors: Gloria Gonzalez Rivera
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