The model y_t = e_t + β₁e_{t -}₁+ β₂e_{t - 2},t = 1,2,….. ,where e_t is an i.i.d.sequence with zero mean and variance σ²_erepresents a(n):

Name: The model y t = e t + β 1 e t - 1 + β 2 e t - 2 ,t = 1,2,….. ,where e t is an i.i.d.sequence with zero mean and variance σ 2 e represents a(n):
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Question

Quizplus · Accepted Answer

The given model is a moving average process of order two, as it depends on the past two error terms (eS1U1B1t-1S1U1B0 and eS1U1B1t-2S1U1B0) with corresponding coefficients (βS1U1B11 and βS1U1B12).

The Model Yt = Et + β1et - 1

The Model Y_t = E_t + β₁e_{t -}₁