Consider the following to answer the question(s) below:
A third-order autoregressive model, AR (3) was fit to monthly closing stock prices, adjusted for dividends, of Boeing Corporation from January 2006 through August 2008 (closing price on the first trading day of the month) . The results are as follows:
-Let Boeing stock price be dependent variable y. The estimated model is
A) = 1.223 + 0.1898yt-1 + 0.2603yt-2 + 0.1959yt-3.
B) = 8.362 - 0.0764yt-1 + 0.0429yt-2 + 0.9247yt-3.
C) = 1.223 + 0.1959yt-1 + 0.2603yt-2 + 0.1898yt-3.
D) = 8.362 + 0.9247yt-1 + 0.0429yt-2 - 0.0764yt-3.
E) = 0.9247yt-1 + 0.2603yt-2 - 0.39yt-3.
Correct Answer:
Verified
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