Given the estimated model _t = b₀ + b₁t, the one-step-ahead and multistep-ahead forecasts are possible, if we know or can predict, future values of the ________. A) dummy variable B) explanatory variable C) response variable D) dependent variable

Question

Quizplus · Accepted Answer

One-step-ahead and multistep-ahead forecasts are based on predicting future values of the explanatory variable, as the response variable is the variable being predicted. The dummy variable is not an explanatory variable, but rather a control variable or indicator variable. The dependent variable is the response variable, so it cannot be used for forecasting.

Given the Estimated Model t = B0 + B1t

Given the Estimated Model _t = B₀ + B₁t