Given the estimated model ,the one-step-ahead and multi-step-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

Given the estimated model  ,the one-step-ahead and multi-step-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

Quizplus · Accepted Answer

One-step-ahead and multi-step-ahead forecasts can be made based on the estimated relationship between the explanatory variable and the dependent variable. If we know or can predict future values of the explanatory variable, we can use the estimated model to forecast the dependent variable. The other options (dummy variable, response variable, and dependent variable) are either already included in the model or are the variable that we are trying to forecast.

Given the Estimated Model ,The One-Step-Ahead and Multi-Step-Ahead Forecasts