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If Ut Refers to the Error Term at Time 'T

Question 22

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If ut refers to the error term at time 't' and yt - 1 refers to the dependent variable at time 't - 1', for an AR(1) process to be homoskedastic, it is required that:


A) Var(ut|yt - 1) > Var(yt|yt-1) = If u<sub>t</sub> refers to the error term at time 't' and y<sub>t -</sub> <sub>1</sub> refers to the dependent variable at time 't - 1', for an AR(1) process to be homoskedastic, it is required that: A) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) > Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. B) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) > <sup>2</sup>. C) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) < Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. D) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. 2.
B) Var(ut|yt - 1) = Var(yt|yt-1) > If u<sub>t</sub> refers to the error term at time 't' and y<sub>t -</sub> <sub>1</sub> refers to the dependent variable at time 't - 1', for an AR(1) process to be homoskedastic, it is required that: A) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) > Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. B) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) > <sup>2</sup>. C) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) < Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. D) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. 2.
C) Var(ut|yt - 1) < Var(yt|yt-1) = If u<sub>t</sub> refers to the error term at time 't' and y<sub>t -</sub> <sub>1</sub> refers to the dependent variable at time 't - 1', for an AR(1) process to be homoskedastic, it is required that: A) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) > Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. B) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) > <sup>2</sup>. C) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) < Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. D) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. 2.
D) Var(ut|yt - 1) = Var(yt|yt-1) = If u<sub>t</sub> refers to the error term at time 't' and y<sub>t -</sub> <sub>1</sub> refers to the dependent variable at time 't - 1', for an AR(1) process to be homoskedastic, it is required that: A) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) > Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. B) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) > <sup>2</sup>. C) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) < Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. D) Var(u<sub>t</sub>|y<sub>t -</sub> <sub>1</sub>) = Var(y<sub>t</sub>|y<sub>t-</sub><sub>1</sub>) = <sup>2</sup>. 2.

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