In a time series model which of the following is

9. In a time series model, which of the following is correct?
a) The Akaike information criterion (AIC) penalizes additional lags more heavily than does the
Schwarz criterion (SC) in a reasonable sample size.
b) The Schwarz criterion (SC) penalizes additional lags more heavily than does the Akaike
information criterion (AIC) in a reasonable sample size.
c) The Schwarz criterion (SC) and the Akaike information criterion (AIC) can be used for choosing p
but not for choosing q in ARDL models.
d) The Schwarz criterion (SC) and the Akaike information criterion (AIC) can be used for choosing q
but not for choosing p in ARDL models.
Answer: b
10. Which of the following expressions is equal to R
2
?

3) What is the marginal effect of an additional $1000 increase in advertising expenditure on the
average ice-cream sale? Is the estimation significant at 5% significant level?
4) What do you conclude from R 2 (the coefficient of determination)?