An AR(2)process Is Written as
A) $\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }$

question 28

Multiple Choice

An AR(2) 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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Definitions:

Moral Obligations

Ethical duties that a person feels compelled to perform based on personal beliefs about right and wrong, despite not being enforceable by law.

Illusory

Appearing to be real or possible, but actually being deceptive or unreal.

Adequate Consideration

Something of value exchanged between parties in a contract, which is fairly sufficient and corresponds to the terms and obligations agreed upon.

Arbitration Clause

A contract provision requiring disputes to be resolved by arbitration rather than in court.