In the First-Order Autoregressive Model Y_i = A₀ + A₁Y_i-1

question 12

Multiple Choice

In the first-order autoregressive model Y_i = a₀ + a₁Y_i-1+ _i,identify the nonautocorrelated random error term.

• A)a₀
• B)_i
• C)a₁
• D)Y_i-1

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