THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 48

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following model: Y = β₀ + β₁X_1t + β₂X_2t + γ₃Y_t-1.Using a sample of 36 months,we estimate this model and obtain the following results: y_t = 1.33 + 17.6x_1t + 0.94x_2t + 0.39Y_t-1
-What value would we typically expect for γ₃?

• A)0 < γ < 1
• B)-1 < γ < 1
• C)γ > 1
• D)γ > 0

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Definitions:

Introspection

The examination of one's own thoughts and feelings.

Sensory Experiences

Interactions with the environment that involve the stimulation of the senses, contributing to perception and learning.

Inherited Traits

Characteristics or features that are passed from parents to their offspring through genes.

Observable Behavior

Actions or reactions of an individual, in response to external or internal stimuli, that are visible and measurable.