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2.Which of following statement is NOT correct about p: %3D = pe-1 + U a. As p approaches one in absolute value, the value of the previous observation of the error term becomes more important in determining the current value of error shock and a high degree of serial correlation exists. b. if p is greater than one in absolute value is unreasonable because it implies that the error term tends to continually increase in absolute value over time ("explode"). c. if Ipl s 1, then e, is stationary d. none of above

2.Which of following statement is NOT correct about p: %3D = pe-1 + U a. As p approaches one in absolute value, the value of the previous observation of the error term becomes more important in determining the current value of error shock and a high degree of serial correlation exists. b. if p is greater than one in absolute value is unreasonable because it implies that the error term tends to continually increase in absolute value over time ("explode"). c. if Ipl s 1, then e, is stationary d. none of above

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
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2.Which of following statement is NOT correct about p: E = pe-1 + u a. As p approaches one in absolute value, the value of the previous observation of the error term becomes more important in determining the current value of error shock and a high degree of serial correlation exists. b. if p is greater than one in absolute value is unreasonable because it implies that the error term tends to continually increase in absolute value over time ("explode"). c. if Ipl < 1, then e, is stationary d. none of above
Transcribed Image Text:2.Which of following statement is NOT correct about p: E = pe-1 + u a. As p approaches one in absolute value, the value of the previous observation of the error term becomes more important in determining the current value of error shock and a high degree of serial correlation exists. b. if p is greater than one in absolute value is unreasonable because it implies that the error term tends to continually increase in absolute value over time ("explode"). c. if Ipl < 1, then e, is stationary d. none of above
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