Consider the Following to Answer the Question(s) Below

question 17

Multiple Choice

Consider the following to answer the question(s) below:
A third-order autoregressive model, AR (3) was fit to monthly closing stock prices, adjusted for dividends, of Boeing Corporation from January 2006 through August 2008 (closing price on the first trading day of the month) . The results are as follows:
-The estimated model is

• A) Pricet = 1.223 + 0.1898 Pricet-1 + 0.2603 Pricet-2 + 0.1959 Price t-3
• B) Pricet = 8.362 - 0.0764 Pricet-1 + 0.0429 Pricet-2 + 0.9247 Pricet-3
• C) Pricet = 1.223 + 0.1959 Pricet-1 + 0.2603 Pricet-2 + 0.1898 Pricet-3
• D) Pricet = 8.362 + 0.9247 Pricet-1 + 0.0429 Pricet-2 - 0.0764 Pricet-3
• E) Indeterminate

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