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1. Write a linear model to predict xt+1 using the share prices on the two preceeding days, i.e., xt and xt-1. 2. The more useful quantity to predict is At+1:= xt+1 to be'), the change in share value. Write a linear model to predict At+1 using xt and Xt (the :=' means 'is defined Xt-1.

1. Write a linear model to predict xt+1 using the share prices on the two preceeding days, i.e., xt and xt-1. 2. The more useful quantity to predict is At+1:= xt+1 to be'), the change in share value. Write a linear model to predict At+1 using xt and Xt (the :=' means 'is defined Xt-1.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 92E
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Suppose that xo, ¤1,..., Xt, Xt+1, ..., denote the (daily) share prices of a particular stock over time. Answer the following questions (you should add a bias term): ••• ) 1. Write a linear model to predict xt+1 using the share prices on the two preceeding days, i.e., xt and Xt-1• 2. The more useful quantity to predict is At+1:= xt+1 – Xt (the :=' means 'is defined to be'), the change in share value. Write a linear model to predict At+1 using xt and - Xt-1•
Transcribed Image Text:Suppose that xo, ¤1,..., Xt, Xt+1, ..., denote the (daily) share prices of a particular stock over time. Answer the following questions (you should add a bias term): ••• ) 1. Write a linear model to predict xt+1 using the share prices on the two preceeding days, i.e., xt and Xt-1• 2. The more useful quantity to predict is At+1:= xt+1 – Xt (the :=' means 'is defined to be'), the change in share value. Write a linear model to predict At+1 using xt and - Xt-1•
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