Which of the following statements about autoregressive model is true?

Group of answer choices

It does regression automatically

It takes advantage of autocorrelation between values in different periods

The degrees of freedom for a p-th order autoregressive model is n-p-1

None of the others

1 answer

The statement "It takes advantage of autocorrelation between values in different periods" is true for an autoregressive model. This model uses the relationship between an observation and a certain number of lagged observations to predict future values. By taking into account the autocorrelation between values in different periods, it can capture the underlying patterns and dynamics of the time series data.