Question: If ut is the error in time t, ut-1 is the error in the previous time period, is the correlation coefficient, and vt a independent

If ut is the error in time t, ut-1 is the error in the previous time period, is the correlation coefficient, and vt a independent and identically distributed (iid) random variable, which of the following best representsan AR(2) second-order autoregressive model of autocorrelated behavior?

  • A.ut= 1ut-1+ 2ut-2+ vt
  • B.ut= 1ut-1+ vt
  • C.ut= ut-1+ ut-2+ vt
  • D.None of these are correct.

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