Given the estimated model = 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

The explanatory variable is the variable that is used to explain or predict changes in the dependent variable. In this case, the model includes only one explanatory variable, and that is ₁t. Therefore, to make forecasts, we need to know or predict future values of this variable. The dummy variable and the response variable are already included in the model, and we do not need to predict their future values.

Given the Estimated Model = B0 + B1t,the One-Step-Ahead

Given the Estimated Model = B₀ + B₁t,the One-Step-Ahead