A limitation of time-series models which is taken care of by causal models is
A)they give weightage is given to more recent data
B)they take into account future events which could have an impact on the market
C)they are easy to understand
D)they are very accurate

Question

Quizplus · Accepted Answer

Causal models take into account the causal relationships between variables, including events that may occur in the future, whereas time-series models only consider past data. Therefore, causal models are better suited for predicting the impact of future events on the market. The other options do not represent a limitation of time-series models that are addressed by causal models.

A Limitation of Time-Series Models Which Is Taken Care of by Causal