You have estimated the following AR(1) model: x=0.3+0.7x+ε, What are E(x) and E(x, x) given you know that x = 0.5? OE(x)=0.3; E(x,|x)=0.65. OE(x)=0.3; E(x,|x)=0.3. OE(x)=1;E(x, x,-)=0.79. OE(x)=1;E(x, x,-)=0.3. O None of the above.

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QUESTION 2
You have estimated the following AR(1) model:
x=0.3+0.7x+ε
What are E(x,) and E(x, Ix) given you know that x=0.5?
OE(x)=0.3;E(x,|x)=0.65.
OE(x)=0.3;E (x,|x)=0.3.
OE(x)=1;E(x, x)=0.79.
OE(x)=1;E(x,x,-)=0.3.
None of the above.
Transcribed Image Text:QUESTION 2 You have estimated the following AR(1) model: x=0.3+0.7x+ε What are E(x,) and E(x, Ix) given you know that x=0.5? OE(x)=0.3;E(x,|x)=0.65. OE(x)=0.3;E (x,|x)=0.3. OE(x)=1;E(x, x)=0.79. OE(x)=1;E(x,x,-)=0.3. None of the above.
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