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

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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.

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Introductory Econometrics A Modern Approach

ISBN: 978-0324660548

4th edition

Authors: Jeffrey M. Wooldridge

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Question Posted: Apr 21, 2016 05:03 AM

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

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Introductory Econometrics A Modern Approach

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