Question: R output interpret AR (2) 9. The figure below shows the output of AR(2) model estimation in R Call: arima(x = gnp, order = c(2,
R output interpret AR (2)
9. The figure below shows the output of AR(2) model estimation in R Call: arima(x = gnp, order = c(2, 0, 0)) coefficients: ar1 ar 2 intercept 0. 3288 0. 1331 0. 0076 s. e. 0. 0746 0. 0748 0. 0014 sigma^2 estimated as 9. 626e-05: log likelihood = 564.04, aic = -1122.08 a) What is the interpretation of the intercept term of this R output? (Remember that R uses a different equation format for the AR models) b) Calculate the constant term of the AR(2) modelStep by Step Solution
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