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Question 110.5 Points Question 120.5 Points Question 130.5 Points What is/are the limitations to using lagged variables? (Choose all that apply) Models adjust quickly to

  1. Question 110.5 Points
  2. Question 120.5 Points
  3. Question 130.5 Points

What is/are the limitations to using lagged variables? (Choose all that apply)

Models adjust quickly to changes

They miss turning points in a time series

Allow recent history to be included in a forecast

Create suboptimal predictions during unexpected events

What is the primary underlying assumption when performing a lagged variable regression?

Regression predictions become slower over time

Models will produce negative results

Autoregressive variables use a linear combination of predictors

The past influences the present

What does a large positive coefficient on a time trend tell us?

A large positive coefficient indicates the y variable is growing over time

A large positive coefficient indicates an inverse relationship between time and the y variable

A large positive coefficient indicates no relationship between time and the y variable

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