Which of the Following Conditions Must Hold for the Autoregressive

question 12

Multiple Choice

Which of the following conditions must hold for the autoregressive part of an ARMA model to be stationary?

• A) All roots of the characteristic equation must lie outside the unit circle
• B) All roots of the characteristic equation must lie inside the unit circle
• C) All roots must be smaller than unity
• D) At least one of the roots must be bigger than one in absolute value.

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Definitions:

Attributed Responsibility

The process of assigning accountability or blame to individuals or entities for actions or outcomes.

Considerable Power

Significant influence or control over situations, decisions, or other people often evident in leadership or hierarchical positions within organizations.

Figurehead

A person holding a position of nominal leadership but with limited actual authority, often symbolic in nature.

Impression Management

entails the process by which individuals attempt to control or influence the perceptions others have of them, often through strategic self-presentation and social behavior.