Which of the Following Statements Correctly Identifies the Difference Between

question 19

Multiple Choice

Which of the following statements correctly identifies the difference between an autoregressive model and a vector autoregressive model?

• A)In an autoregressive model, the dependent variable is expressed as a function of its own lag, whereas in a vector autoregressive model, the dependent variable is expressed as a function of the lag of an explanatory variable.
• B)In an autoregressive model, the dependent variable is expressed as a function of the lag of an explanatory variable, whereas in a vector autoregressive model, the dependent variable is expressed as a function of its own lag.
• C)In an autoregressive model several series are modeled in terms of their own past, whereas in a vector autoregressive model only one series is modeled in terms of its own past.
• D)In an autoregressive model one series is modeled in terms of its own past, whereas in a vector autoregressive model several series are modeled in terms of their past.

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Definitions:

Mild

Describes something that is gentle or not severe in effect or degree.

Contingency Table

A table used in statistics to display the frequency distribution of variables, showing the number of observations for each combination of two categorical variables.

Mutually Exclusive

Two events that cannot both occur at the same time, often referenced in probability and statistics to describe situations where the happening of one event excludes the occurrence of another.

Subcategories

Specific groups or divisions within a larger category, used to further classify items or data.