A recursive forecasting framework is one where
A) The initial estimation date is fixed but additional observations are added one at a time to the estimation period
B) The length of the in-sample period used to estimate the model is fixed so that the start date and end date successively increase by one observation
C) The initial estimation date changes as additional observations are added one at a time to the estimation period
D) The length of the out-of-sample period used to estimate the model is fixed so that the start date and end date successively increase by one observation

Question

Quizplus · Accepted Answer

In a recursive forecasting framework, the initial estimation date is fixed, and additional observations are added one at a time to the estimation period, allowing the model to be updated with new data.

A Recursive Forecasting Framework Is One Where