Consider the following to answer the question(s) below:
A third-order autoregressive model, AR (3) was fit to monthly closing stock prices, adjusted for dividends, of Boeing Corporation from January 2006 through August 2008 (closing price on the first trading day of the month). The results are as follows:

-Which of the following statements is true?
A) At α = 0.05, the first lagged variable is significant.
B) At α = 0.05, the second lagged variable is significant.
C) At α = 0.05, the third lagged variable is significant.
D) At α = 0.05, the second lagged variable is significant and at α = 0.05, the third lagged variable is significant.
E) At α = 0.05, the first lagged variable is not significant.

Question

Consider the following to answer the question(s) below:
A third-order autoregressive model, AR (3) was fit to monthly closing stock prices, adjusted for dividends, of Boeing Corporation from January 2006 through August 2008 (closing price on the first trading day of the month). The results are as follows:

-Which of the following statements is true?
A) At α = 0.05, the first lagged variable is significant. 
B) At α = 0.05, the second lagged variable is significant. 
C) At α = 0.05, the third lagged variable is significant. 
D) At α = 0.05, the second lagged variable is significant and at α = 0.05, the third lagged variable is significant. 
E) At α = 0.05, the first lagged variable is not significant.

Quizplus · Accepted Answer

Without specific data or context, it's impossible to determine the significance of lagged variables. However, if this is a true/false question based on provided data or a specific scenario, the correct answer would depend on that specific context. Since I can't evaluate the significance of variables without data, this response assumes a hypothetical scenario where statement A is considered true.

Consider the Following to Answer the Question(s) Below