One of the Sources of Error in the RMSFE in the AR(1)model

question 34

Multiple Choice

One of the sources of error in the RMSFE in the AR(1) model is

• A)the error in estimating the coefficients β0 and β1.
• B)due to measuring variables in logarithms.
• C)that the value of the explanatory variable is not known with certainty when making a forecast.
• D)the model only looks at the previous period's value of Y when the entire history should be taken into account.

---

Definitions:

Universal

In logic, a universal statement is one that asserts something about every member of a particular category.

Negative Premise

A statement in an argument that denies a certain condition or asserts the absence of something.

Affirmative Conclusion

A conclusion that positively asserts the relationship between the subject and the predicate, rather than negating it.

Extended Argument

A complex line of reasoning that may involve multiple premises and conclusions, typically developed over a longer discourse.