In a GARCH(p,q)model,what does the q indicate? A)the number of lagged h terms B)the number of lagged e² terms C)the number of endogenous variables in a system D)the number of excluded exogenous variables that can be instruments

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In a GARCH(p,q) model, the q indicates the number of lagged e² terms. These terms capture the information about the past squared error terms and past variances, which are used to model the time-varying volatility in the series. The number of lagged h terms is indicated by p, which captures the information about the past conditional variances. The other options (C and D) are not relevant to the GARCH model.

In a GARCH(p,q)model,what Does the Q Indicate