Which of the following is the correct final equation for a p transformed model? A) Y_t= B₀(1-$\rho$) +B₁(X_t-$\rho$X_t-1) + v_t B) Y_t-$\rho$ Y_t-1= B₀(1-p) +B₁(X_t-$\rho$X_t-1) + v_t C) Y_t-$\rho$Y_t-1= B₀+ B₁(X_t-$\rho$X_t-1) + v_t D) Y_t-$\rho$Y_t-1= B₀(1-$\rho$) + B₁X_t+ v_t

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Quizplus · Accepted Answer

The correct final equation for a p transformed model should be in the form of Yt = β0 + β1pt + vt. Option B is the only equation that meets this criteria with pt being equal to (1-F1F1F1S1F1F1F10) + (X_t-F1F1F1S1F1F1F10F1F1F1S1F1F1F10X_t-1).

Which of the Following Is the Correct Final Equation for a P