The Distributed Lag Model Assumptions Include All of the Following

question 25

Multiple Choice

The distributed lag model assumptions include all of the following with the exception of:

• A)There is no perfect multicollinearity.
• B)Xt is strictly exogenous.
• C)E(ut Xt,Xt-1,Xt-2)= 0
• D)The random variables Xt and Yt have a stationary distribution.

---

Definitions:

Support Departments

Units within an organization providing essential services to profit centers or other departments, but not directly generating revenue.

Janitorial Department Costs

These are expenses related to the cleaning and maintenance of a company’s premises.

Performance Report

A document that compares actual work performance against planned or standard performance.

Support Department

An organizational unit that provides necessary services or support to the production and operational departments but is not directly involved in the primary business activities.