Question
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
- 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 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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