A model where the current value of a variable depends upon only the values that the variable took in previous periods plus an error term is called
A) An autoregressive model
B) An autoregressive moving average model
C) An autoregressive integrated moving average model
D) A periodic lag model

Question

Quizplus · Accepted Answer

An autoregressive model is defined by the characteristic that the current value of the series is based on the past values of the series itself, plus a stochastic error term, fitting the description given.

A Model Where the Current Value of a Variable Depends