Examlex
The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. The autoregressive models of order 1 and 2, yt = β0 + β1yt - 1 + εt, and yt = β0 + β1yt - 1 + β2yt - 2 + εt, were applied on the time series to make revenue forecasts. The relevant parts of Excel regression outputs are given below.
Model AR(1):
Model AR(2):
Compare Excel outputs for AR(1) and AR(2) and choose the forecasting model that seems to be better.
Taxes
Mandatory financial charges imposed by governments on individuals or entities to fund public expenditures, with failure to pay typically resulting in legal penalties.
Canada Pension Plan
A mandatory public insurance program in Canada that provides income in retirement, as well as benefits to the disabled and survivors of deceased contributors.
Contributory Benefit
A type of financial assistance that individuals receive based on their previous contributions to a welfare system, typically through taxes or specific insurance schemes.
Performance Incentives
Rewards linked to the accomplishment of specific performance targets or objectives designed to motivate and reward employees.
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