What Does It Mean for a Model to Be GARCH-In-Mean

question 6

Multiple Choice

What does it mean for a model to be GARCH-in-mean?

• A)the mean and variance both move over time but are independent
• B)the mean is constant but variance changes over time
• C)the mean increases while variance is constant
• D)the mean increases with the variance

---

Definitions:

Hypothesis

A proposed explanation or assumption for a phenomenon, placed forward as a basis for further investigation or experimentation.

Theory

A coherent set of propositions formulated to explain a group of facts or phenomena, often tested through scientific methods.

Functionalism

A theoretical framework in sociology that emphasizes the interdependence of the parts of a society and their roles in maintaining social stability.

Social Relations

Interactions between individuals or groups that form the basis of social structure and contribute to an individual's sense of identity and belonging.