If a Series Possesses the "Markov Property", What Would This

question 3

Multiple Choice

If a series possesses the "Markov property", what would this imply?
(I) The series is path-dependent
(ii) All that is required to produce forecasts for the series is the current value of the series plus a transition probability matrix
(iii) The state-determining variable must be observable
(iv) The series can be classified as to whether it is in one regime or another regime, but it can only be in one regime at any one time

• A) (ii) only
• B) (i) and (ii) only
• C) (i), (ii), and (iii) only
• D) (i), (ii), (iii), and (iv)

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Definitions:

Creativity

Innovation; the ability to use imagination and insight to produce new ideas, products, and processes; an important ability that can be enhanced by keeping an open mind, having a questioning attitude, and using a new-ideas system.

Direction

The point, objective, or targeted goal; the establishment of purpose as an essential leadership function.

Warmth

A quality of being friendly, kind, or considerate, often creating a comfortable and welcoming atmosphere.

Introspection

The examination or observation of one's own mental and emotional processes.