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An AR(1) model for daily load forecasting is as follows: xt=0+1t+2t2+3It+4xt1+t Which of the following statements is correct? Responses A When 4 is positive then

An AR(1) model for daily load forecasting is as follows: xt=0+1t+2t2+3It+4xt1+t Which of the following statements is correct? Responses A When 4 is positive then the model suggests that high demand in one period is followed by low demand in the next. When beta sub 4 is positive then the model suggests that high demand in one period is followed by low demand in the next. B The term t is included to allow the forecast to be adjusted when there is a public holiday.The term is included to allow the forecast to be adjusted when there is a public holiday. C If xt has no long-term trend up or down then the term 0 will be close to zero.If x sub t has no long-term trend up or down then the term will be close to zero. D The term 3It can be used to capture the weekly seasonality of demand by setting It=It+7 .The term can be used to capture the weekly seasonality of demand by setting cap i sub t is equal to cap i sub t plus 7. E The term 1t is one of the autoregressive terms showing how xt is influenced by previous values

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