For an autoregressive model solution to a forecasting problem, the autocorrelation plot should _______ and the partial autocorrelation plot should _______.

A. slowly approach one; and cyclically approach zero.
B. dramatically cut off to zero; decline to zero either monotonically or in a wavelike manner.
C. gradually approach zero; dramatically cut off to zero.
D. dramatically approach zero; exponentially approach one.
E. None of the options are correct.


Answer: C

Business

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