The Prais-Winsten Procedure for AR(1)improves on the Cochrane-Orcutt Method for AR(1)by

question 43

Multiple Choice

The Prais-Winsten procedure for AR(1) improves on the Cochrane-Orcutt method for AR(1) by

• A)incorporating estimates of the first observation only in the first iteration.
• B)incorporating estimates of the first observation in all iterations.
• C)generating an estimate of \(\hat { \rho }\) that actually equals ρ.
• D)reducing the required number of iterations.

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