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QUESTION THREE 3} A researcher is trying to determine The appropriate order of an ARM model to describe some actual data with 200 observations. She
QUESTION THREE 3} A researcher is trying to determine The appropriate order of an ARM model to describe some actual data with 200 observations. She has the following gures for n2 the log of the estimated residual variance (i.e. log":r ) for the various candidate models. The researcher has assumed mat an order greater than (3, 3] should not be necessary to model the dynamics of the data. 2|Page
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