Which of the Following Could Be Viewed as a Disadvantage

question 3

Multiple Choice

Which of the following could be viewed as a disadvantage of the vector autoregressive (VAR) approach to modelling?

• A) We do not need to specify which variables are endogenous and which are exogenous
• B) Standard form VARs can be estimated equation-by-equation using OLS
• C) VARs often contain a large number of terms
• D) VARs can be expressed using a very compact notation.

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Definitions:

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about the target market, customers, competition, and the industry as a whole.

Behavioral

Related to the actions or reactions of individuals or groups in response to internal or external stimuli, often studied in psychology and marketing.

Psychographic

Refers to the study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Demographic

Statistical data relating to the population and particular groups within it, often used in market research to identify and target specific market segments.