If There Are T Observations to Estimate the Lagged Regression

question 94

Multiple Choice

If there are T observations to estimate the lagged regression model y_t = β₀ + β₁x_{t - 1} + ε_t, what is the actual number of observations used to make the forecast for time period T?

• A) T - 1
• B) T + 1
• C) 1 - T
• D) T

---

Definitions:

Round

To adjust a number to a desired degree of precision, usually to a nearby value that is easier to work with or understand.

Markup

The sum included in the purchase price of products to account for overhead expenses and gain profit.

Inequalities

Mathematical statements that compare two expressions using inequality symbols, showing if one is less than, greater than, or not equal to the other.

Equivalent

Two expressions that have the same value or represent the same mathematical quantity.