on the residuals {} is needed to enable forecasting with this model in practice? 1¹-2... and e 1-1¹e1-2... ependent for all t# s.

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
Section1.2: The Least Square Line
Problem 5E
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Consider the following ARMA model for {y}:
P
+ Źay. +²+ Ébe
Σbe
t
j=1
1=1
y₁₂ = a₁ +
where {} is the residual.
Which of the following assumption(s) on the residuals {⁹} is needed to enable forecasting with this model in practice?
O a. & is normally distributed.
t
It-l
O b. is mean-independent of y₁-11-2².. and &
t
d. All of the above.
t-1¹²1-2²...
C. & and & are stochastically independent for all t‡ s.
t
S
Transcribed Image Text:Consider the following ARMA model for {y}: P + Źay. +²+ Ébe Σbe t j=1 1=1 y₁₂ = a₁ + where {} is the residual. Which of the following assumption(s) on the residuals {⁹} is needed to enable forecasting with this model in practice? O a. & is normally distributed. t It-l O b. is mean-independent of y₁-11-2².. and & t d. All of the above. t-1¹²1-2²... C. & and & are stochastically independent for all t‡ s. t S
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