Consider the Following Picture and Suggest the Model from the Following

question 14

Multiple Choice

Consider the following picture and suggest the model from the following list that best characterises the process:

• A) An AR(1)
• B) An AR(2)
• C) An ARMA(1,1)
• D) An MA(3)

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Definitions:

Cash Outflow

Money or cash spent by a company for operating expenses, investments, and financing activities.

Cash Inflow

Funds or amounts of money received by an organization, either from operational activities such as sales or non-operational activities like investments and financing.

Noncash Investing

Investment activities that do not involve direct cash transactions, such as acquiring assets through issuance of stock or exchange of other assets.

Financing Activity

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).