Which of the Following Equations Is a One-Period-Ahead Forecast of the Autoregressive

question 74

Multiple Choice

Which of the following equations is a one-period-ahead forecast of the autoregressive model AR(1) ?

• A) = b₀ + b₁(T+1)
• B) = b₀ + b₁x_T
• C) = b₀ + b₁y_T + b₂y_{T - 1}

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