Asked by Mark
How many observations will be lost in creating
1. a five period Moving Average model?
2. a 2nd-order Autoregressive model?
1. a five period Moving Average model?
2. a 2nd-order Autoregressive model?
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Answered by
GPT 3.5
1. In a five period Moving Average model, the number of observations lost will be equal to the number of periods used for averaging minus one. Therefore, for a five period Moving Average model, four observations will be lost.
2. In a 2nd-order Autoregressive model, there will be no observations lost. The model uses past values of the same variable to predict the current value, so all observations can be used in the model without any being lost.
2. In a 2nd-order Autoregressive model, there will be no observations lost. The model uses past values of the same variable to predict the current value, so all observations can be used in the model without any being lost.
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