An AR(1,6)process is written as
A) $\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }$
B) $\varepsilon _ { t } = \rho \varepsilon _ { t - 6 } + u _ { i }$
C) $\varepsilon _ { t } = \rho _ { 1 } \varepsilon _ { t - 1 } + \rho _ { 2 } \varepsilon _ { t - 2 } + u _ { t }$
D) $\varepsilon _ { t } = \rho _ { 1 } \varepsilon _ { t - 1 } + \rho _ { 6 } \varepsilon _ { t - 6 } + u _ { t }$

Question

Quizplus · Accepted Answer

An AR(1,6) process has an autoregressive lag of 1 and 6, meaning that the current error term is a weighted sum of the error terms from the previous time point and the time point 6 periods ago. This corresponds to option D, where the autoregressive terms are $\rho_1$ and $\rho_6$. Options A and B only have one autoregressive term, while option C has two autoregressive terms but neither of them is lagged by 6 periods.

An AR(1,6)process Is Written as A) εt=ρεt−1+ut\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }εt​=ρεt−1​+ut​

An AR(1,6)process Is Written as
A) $\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }$