For a time series generated by the first-order autoregressive model,forecasts of future values depend only on the most recent value of the series.

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Quizplus · Accepted Answer

This is true for the first-order autoregressive model, as it assumes that the current value of the time series is a linear function of the previous value and a stochastic error term. Therefore, forecasts of future values only depend on the most recent value of the series.

For a Time Series Generated by the First-Order Autoregressive Model,forecasts