Suppose there is a series,Yt,modeled by the following three equations: yt = +et (1)
Et|It-1 N(0, ht) (2)
Ht = 0+ 1 e2t-1, 0 0 ≤ 1 1
Equation 2 indicates the error term is
A) normally distributed
B) conditionally normal
C) bi-modally distributed
D) binomially distributed
Correct Answer:
Verified
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