Autoregressive Models

question 10

Multiple Choice

Autoregressive models

• A)use the average of the most recent data values in the time series as the forecast for the next period.
• B)are used to smooth out random fluctuations in time series.
• C)relate a time series to other variables that are believed to explain or cause its behavior.
• D)occur whenever all the independent variables are previous values of the time series.

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Definitions:

Lowballing

A sales and negotiation tactic where an initial, lower price is offered to entice a buyer, before it is subsequently raised once the buyer is interested or committed.

Mere Exposure

A mental effect where individuals grow fond of things simply because they are accustomed to them.

Reciprocal Helping

A cooperative behavior where an individual helps another with the expectation that the favor will be returned in the future.

Altruism

The act of providing help when it is needed, with no apparent reward for doing so.