What Is the Primary Advantage of a GARCH Model Rather

question 9

Multiple Choice

What is the primary advantage of a GARCH model rather than an ARCH model?

• A)fewer parameters to be estimated
• B)fewer assumptions required
• C)normally distributed estimators
• D)lower variance of estimates

---

Definitions:

Emotional Changes

Alterations in one's mood or emotional state, which can be influenced by various factors including psychological, physiological, and environmental.

Temperature Regulation

The physiological and behavioral processes by which an organism maintains its body temperature within an optimal range.

Sacral

Pertaining to the sacrum, the triangular bone at the base of the spine in between the hip bones of the pelvis.

Thoracic

Pertaining to the chest region of the body, including the thoracic cavity that houses the heart and lungs.