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Which of the Following Statements Correctly Identifies the Difference Between

Question 6

Multiple Choice

Which of the following statements correctly identifies the difference between an autoregressive model and a vector autoregressive model?


A) In an autoregressive model,the dependent variable is expressed as a function of its own lag,whereas in a vector autoregressive model,the dependent variable is expressed as a function of the lag of an explanatory variable.
B) In an autoregressive model,the dependent variable is expressed as a function of the lag of an explanatory variable,whereas in a vector autoregressive model,the dependent variable is expressed as a function of its own lag.
C) In an autoregressive model several series are modelled in terms of their own past,whereas in a vector autoregressive model only one series is modelled in terms of its own past.
D) In an autoregressive model one series is modelled in terms of its own past,whereas in a vector autoregressive model several series are modelled in terms of their past.

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