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

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Definitions:

Prohibition

The act of formally forbidding something by law, such as the historical ban on the production and sale of alcoholic beverages in the United States from 1920 to 1933.

Immigration

The act of moving to a country that is not one's native country with the intention to settle there.

Immigration Quotas

A system that sets limits on the number of immigrants allowed to enter a country.

Immigration Act of 1924

A United States federal law that restricted immigration by establishing quotas based on nationality.