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An AR(2)process Is Written as
A) εt=ρεt1+ut\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }

Question 28

Multiple Choice

An AR(2) process is written as


A) εt=ρεt1+ut\varepsilon _ { t } = \rho \varepsilon _ { t - 1 } + u _ { t }
B) εi=ρεi1+ui\varepsilon _ { i } = \rho \varepsilon _ { i - 1 } + u _ { i }
C) εt=ρ1εt1+ρ2εt2+ut\varepsilon _ { t } = \rho _ { 1 } \varepsilon _ { t - 1 } + \rho _ { 2 } \varepsilon _ { t - 2 } + u _ { t }
D) εi=ρ1εi1+ρ2εi2+ui.\varepsilon _ { i } = \rho _ { 1 } \varepsilon _ { i - 1 } + \rho _ { 2 } \varepsilon _ { i - 2 } + u _ { i } .

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