Question: Let {yt} be an 1(1) sequence. Suppose that n is the one-step-ahead forecast of yn+1 and let fn = n + yn be the one-step-ahead

Let {yt} be an 1(1) sequence. Suppose that n is the one-step-ahead forecast of Δyn+1 and let fn = n + yn be the one-step-ahead forecast of yn+1. Explain why the forecast errors for forecasting Δyn+1 and yn+1 are identical.

Step by Step Solution

★★★★★

3.42 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Let be the forecast error for forecasting y n 1 an... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

839-M-E-E-A (818).docx

120 KBs Word File

Students Have Also Explored These Related Econometric Questions!

Let {xn} be a sequence of real numbers. Suppose that for each > 0 there is an N N such that m > n > N implies |mk=n xk| exists and is finite. ri 200

(i) For a binary response y, let y be the proportion of ones in the sample (which is equal to the sample average of the y.). Let 0 be the percent correctly predicted for the outcome y = 0 and let 1...

Suppose that Yt follows the stationary AR(1) model Yt = 2.5 + 0.7Yt-1 + ut, where ut is i.i.d. with E(ut) = 0 and var(ut) = 9. (a) Compute the mean and variance of Yt. (b) Compute the first two auto...

9 Let {yt} be an I(1) sequence. Suppose that gn is the one-step-ahead forecast of yn1 and let fn gn yn be the one-step-ahead forecast of yn1. Explain why the forecast errors for forecasting yn1 and...

Let 5yt 6 be an I(1) sequence. Suppose that g^ n is the one-step-ahead forecast of Dyn11 and let f ^ n 5 g^ n 1 yn be the one-step-ahead forecast of yn11. Explain why the forecast errors for...

Describe how to construct the function cpo ((D E), v) of two cpos (D, vD) and (E, vE). Prove that ((D E), v) is a cpo. (You may use facts about least upper bounds provided you state them clearly.)...

1. (60 pts True/False. Indicate whether the statement is true or false. If the statement is false, present an explanation or counterexample. (No explanation necessary for each true statement.) (2...

Microkernel operating systems aim to address perceived modularity and reliability issues in traditional "monolithic" operating systems. (i) Describe the typical architecture of a microkernel...

ANSI-SPARC6 Programming Language Compilation Write notes on each of the following topics: (a) the implementation of labels and jumps in a recursive, block structured programming language [7 marks]...

1456HHSC attend all (a) In the quantum teleportation protocol, Alice and Bob are every in possession of one qubit of a couple in the joint country00i + statei. Explain how the protocol works. In...

An insulated cylinder is fitted with a movable piston to maintain constant pressure. The cylinder initially contains 100 g of ice at 10oC. Heat is supplied to the contents at a constant rate by a...

Presented are accounts from the adjusted trial balance of Montoya, Inc. at December 31, 2020. Notes receivable is due in 8 months.Additional information: Notes Payable ? Farmers Merchants is due in 6...

A company manufactures and sells a product for $ 1 3 0 per unit. The company's fixed costs are $ 7 1 , 7 6 0 , and its variable costs are $ 1 0 0 per unit. The company's break - even point in units...

Refer to the data from Exercise 4.6 after the transformation. Compute the eigenvectors and prepare scatter-plots of the principal.com- ponents. b. Compare the results of principal component...

Derive the mean and variance of a hypergeometric random variable (difficult exercise).

Show that the function f (x) in Example 3-5 satisfies the properties of a probability mass function by summing the infinite series.

Derive the formula for the mean and standard deviation of a discrete uniform random variable over the range of integers.

(-10.4 Points] DETAILS HARMATHAP12 1.3.055. Suppose that from 2020 to 2060, the number of females in the U.S. under the age of 18, in millions, can be modeled by N = 0.140x + 36.4 where is the number...

Let A be the part of a disk with radius 17 with the center of origin that lies in the second quadrant. The area of A is given by the following double integral in polar coordinates I92 1'20?) / f r,...

Go to a local library; collect a sample of books consisting of the ages of book (based on copyright dates). Plan and describe the sampling procedure, then use the results to construct a confidence...