In the exponential smoothing model. the predicted value of the first time period is left empty because we do not have the data for period t = 0.

a.

True

b.

False

In an autoregressive model, the values of the coefficients (, t-p) must be based on theory, the summary statistics and the context of the data.

a.

True

b.

False

Which statement about the error term (t) of the autoregressive model is false?

a.

It has a mean of 0.

b.

It is correlated with previous error terms (t-p).

c.

It has a constant variance.