A Multiperiod Regression Forecast H Periods into the Future Based

question 3

Multiple Choice

A multiperiod regression forecast h periods into the future based on an AR(p) is computed

• A)the same way as the iterated AR forecast.
• B)by estimating the multiperiod regression Y_t = δ₀ + δ₁Y_t-h + ... + δ_pY_t-p-h+1 + u_t, then using the estimated coefficients to compute the forecast h periods in advance.
• C)by estimating the multiperiod regression Y_t = δ₀ + δ₁Y_t-h + u_t , then using the estimate coefficients to compute the forecast h period in advance.
• D)by first computing the one-period ahead forecast, next using that to compute the two-period ahead forecast, and so forth.

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Definitions:

Test Statistic

A quantity determined from the data of a sample within a hypothesis testing framework, utilized to assess the rejection of the null hypothesis.

P-value

The probability of obtaining test results at least as extreme as the results actually observed, given that the null hypothesis is true.

Mean Lifetime

The average length of time that an entity (like a product or component) is expected to last under specified conditions.

Critical Value(s)

Critical values are threshold values that define regions where the test statistic leads to the rejection of the null hypothesis.