The Regression Y_t = β₀ + β₁y_t-1 + ε_t is

question 70

Short Answer

The regression y_t = β₀ + β₁y_t-1 + ε_t is referred to as a(n) ________ model of order one.

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Definitions:

Critical Statistic

A specific value computed from sample data used to determine whether to reject the null hypothesis in hypothesis testing.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution or a parameter estimation, subtracting the number of parameters estimated.

Correlation Coefficients

Numeric measures that describe the strength and direction of the relationship between two variables.

Direct Correlation

A statistical relationship between two variables where both variables move in the same direction.