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Suppose that Y+ follows a stationary AR(1) model with P = 0 and ₁ = 0.6. If Y₁ = 7, what is your forecast of Y₁+2 (that is, what is Yt+2|t)? Yt + 2lt = - (Round your response to two decimal places.) What is your forecast of Yt + hit for h = 30? Yt+30jt = (Round your response to six decimal places.) Does this forecast of Yt+30 seem reasonable to you? A. No, because the forecast should be close to the value of Y₁. O B. Yes, because the forecast of Y₁+30 should be close to the mean of Y₁, which is zero. C. Yes, because the forecast is calculated using the appropriate formula. O D. No, because the forecast should be close to the value of Y₁+2.

Suppose that Y+ follows a stationary AR(1) model with P = 0 and ₁ = 0.6. If Y₁ = 7, what is your forecast of Y₁+2 (that is, what is Yt+2|t)? Yt + 2lt = - (Round your response to two decimal places.) What is your forecast of Yt + hit for h = 30? Yt+30jt = (Round your response to six decimal places.) Does this forecast of Yt+30 seem reasonable to you? A. No, because the forecast should be close to the value of Y₁. O B. Yes, because the forecast of Y₁+30 should be close to the mean of Y₁, which is zero. C. Yes, because the forecast is calculated using the appropriate formula. O D. No, because the forecast should be close to the value of Y₁+2.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 91E
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Suppose that Y+ follows a stationary AR(1) model with P = 0 and ₁ = 0.6. If Y₁ = 7, what is your forecast of Y₁+2 (that is, what is Yt+2|t)? Yt + 2lt = - (Round your response to two decimal places.) What is your forecast of Yt + hit for h = 30? Yt+30jt = (Round your response to six decimal places.) Does this forecast of Yt+30 seem reasonable to you? A. No, because the forecast should be close to the value of Y₁. O B. Yes, because the forecast of Y₁+30 should be close to the mean of Y₁, which is zero. C. Yes, because the forecast is calculated using the appropriate formula. O D. No, because the forecast should be close to the value of Y₁+2.
Transcribed Image Text:Suppose that Y+ follows a stationary AR(1) model with P = 0 and ₁ = 0.6. If Y₁ = 7, what is your forecast of Y₁+2 (that is, what is Yt+2|t)? Yt + 2lt = - (Round your response to two decimal places.) What is your forecast of Yt + hit for h = 30? Yt+30jt = (Round your response to six decimal places.) Does this forecast of Yt+30 seem reasonable to you? A. No, because the forecast should be close to the value of Y₁. O B. Yes, because the forecast of Y₁+30 should be close to the mean of Y₁, which is zero. C. Yes, because the forecast is calculated using the appropriate formula. O D. No, because the forecast should be close to the value of Y₁+2.
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