Consider the following ARMA model for {y }: Σ +E + y,=a,+ j=1 where {E a y 1=1 is the residual. Which of the following assumption(s) on the residuals {ɛ } is needed to enable forecasting with this model in practice? O a. e is normally distributed. O b.g is mean-independent of y and ɛ-1€,-2"*.* 1-2'*** O C. e and e are stochastically independent for all O d. All of the above. QUESTION 2 How can the validity of the assumption(s) identified in Question 1 be examined in practice? O a. Use the Breusch-Pagan test, where the null hypothesis is that the distribution is normal. Ob. Use the Ljung-Box test, where the null hypothesis is that the first K autocorrelations are zero. O C. Examine the SACF and SPACF of the estimated residuals d. Both (b) and (c).
Consider the following ARMA model for {y }: Σ +E + y,=a,+ j=1 where {E a y 1=1 is the residual. Which of the following assumption(s) on the residuals {ɛ } is needed to enable forecasting with this model in practice? O a. e is normally distributed. O b.g is mean-independent of y and ɛ-1€,-2"*.* 1-2'*** O C. e and e are stochastically independent for all O d. All of the above. QUESTION 2 How can the validity of the assumption(s) identified in Question 1 be examined in practice? O a. Use the Breusch-Pagan test, where the null hypothesis is that the distribution is normal. Ob. Use the Ljung-Box test, where the null hypothesis is that the first K autocorrelations are zero. O C. Examine the SACF and SPACF of the estimated residuals d. Both (b) and (c).
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 5EA
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