If T Denotes the Number of Observations, Which of the Following

question 98

Multiple Choice

If T denotes the number of observations, which of the following equations represents the one-step-ahead forecast for the model y_t = β₀ + β₁x_t + ε_t?

• A) _{T - 1} = b₀ + b₁x_{T - 1}
• B) _{T - 1} = b₀ + b₁x_{T + 1}
• C) _{T + 1} = b₀ + b₁x_T+1
• D) _{T + 1} = b₀ - b₁x_T+1

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Definitions:

Investment

Designating financial means with the prospect of attaining profit or income.

Capital Intensity Ratio

A financial metric that compares a company's total assets to its sales revenue, used to evaluate how much capital is needed to generate sales.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, as reported on the balance sheet.

Capacity Utilization

The percentage of a firm or industry's total production capacity that is actually being used over a specific period.