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Suppose There Is a Series,Yt,modeled by the Following Three Equations ϕ\phi

Question 8

Multiple Choice

Suppose there is a series,Yt,modeled by the following three equations: yt = ϕ\phi +et (1)
Et|It-1 N(0, ht) (2)
Ht = α\alpha 0+ α\alpha 1 e2t-1, α\alpha 0 0 ≤ α\alpha 1 <\lt 1
Equation 2 indicates the error term is


A) normally distributed
B) conditionally normal
C) bi-modally distributed
D) binomially distributed

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