An AR(1)process Is Written as
A) $\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }$

question 48

Multiple Choice

An AR(1) process is written as

• A) \(\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }\)
• B) \(\varepsilon _ { i } = \rho \varepsilon _ { i - 1 } + u _ { i }\)
• C) \(\varepsilon _ { t } = \rho _ { 1 } \varepsilon _ { t - 1 } + \rho _ { 2 } \varepsilon _ { t - 2 } + u _ { t }\)
• D) \(\varepsilon _ { i } = \rho _ { 1 } \varepsilon _ { i - 1 } + \rho _ { 2 } \varepsilon _ { i - 2 } + u _ { i } .\)

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