BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ANALYTICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The value of an independent variable from the prior period is referred to as a ____
A
lagged variable
B
dummy variable
C
predictor variable
D
categorical variable
Explanation: 

Detailed explanation-1: -The value of an independent variable from the prior period is referred to as a. Lagged variable. A measure of forecasting accuracy, the average of the squared differences between the forecast values and the actual time series values is the. Mean squared error (MSE)

Detailed explanation-2: -Lag Variable. A lag variable is a variable based on the past values of the time series. Recall that we introduced the idea of a lag variable in our development of the ACF. Notationally, if y t represents the time series in question, then lag variables are given by y t − 1, y t − 2, …

Detailed explanation-3: -Independent variables are also called: Explanatory variables (they explain an event or outcome) Predictor variables (they can be used to predict the value of a dependent variable) Right-hand-side variables (they appear on the right-hand side of a regression equation).

Detailed explanation-4: -A lagged dependent variable in an OLS regression is often used as a means of capturing dynamic effects in political processes and as a method for ridding the model of autocorre-lation. But recent work contends that the lagged dependent variable specification is too problematic for use in most situations.

Detailed explanation-5: -Lagged dependent variables (LDVs) have been used in regression analysis to provide robust estimates of the effects of independent variables, but some research argues that using LDVs in regressions produces negatively biased coefficient estimates, even if the LDV is part of the data-generating process.

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