Threshold Autoregressive and Markov Switching Models

question 1

Multiple Choice

Threshold autoregressive and Markov switching models:

• A) Allow us to potentially capture regime switches in a dependent variable
• B) Forecast correlations of two distinct series
• C) Maximise the threshold of autoregressive models
• D) All of the above

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Definitions:

Balance Sheet

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Cash Receipts Journal

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