If you determine from a Dickey Fuller test that a regression of Market Price data on its one day lagged price is a random walk which of the following is the most reliable regression to use on this data series? Model 1: Model 2: Model 3: Model 4: Price = B₁ + B₂Price 1 + e APrice,= B₁ + B₂Price 1 + e APrice = B₁ + B₂APrice 1 + e APrice-1 B₁ + B₂APrice 1 + e =
If you determine from a Dickey Fuller test that a regression of Market Price data on its one day lagged price is a random walk which of the following is the most reliable regression to use on this data series? Model 1: Model 2: Model 3: Model 4: Price = B₁ + B₂Price 1 + e APrice,= B₁ + B₂Price 1 + e APrice = B₁ + B₂APrice 1 + e APrice-1 B₁ + B₂APrice 1 + e =
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.2: The Least Square Line
Problem 5E
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1
Transcribed Image Text:If you determine from a Dickey Fuller test that a regression of Market Price data on its one day
lagged price is a random walk which of the following is the most reliable regression to use on this
data series?
Model 1:
Model 2:
APrice, B₁ + B₂Price 1 + e
Model 3:
APrice,= B₁ + B₂APrice+-1 + e
Model 4: APrice-1 B₁ + B₂APrice 1 + e
=
Price,
O Model 3
O Model 4.
=
B₁ + B₂Price 1 + e
M
O No answer text provided.
O Model 1
O Model 2
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