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) .Based on the results shown below, the estimated model is ________________________ .
A) Price (t) = 1.223 + .1898 Price (t-1) + .2603 Price (t-2) + 1959 Price (t-3)
B) Price (t) = 8.362 - .0764 Price (t-1) + .0429 Price (t-2) + .9247 Price (t-3)
C) Price (t) = 1.223 + .1959 Price (t-1) + .2603 Price (t-2) + .1898 Price (t-3)
D) Price (t) = 8.362 + .9247 Price (t-1) + .0429 Price (t-2) - .0764 Price (t-3)
E) None of the above.
Correct Answer:
Verified
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