What kind of process has been estimated

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Question: Table shows basic computer results from a Box Jenkins analysis of the daily percentage changes in the Dow Jones Industrial stock market index from Jul. 31 to Oct. 9, 1987, prior to the crash of 1987.

a. What kind of process has been estimated?

b. Write the model in a way that shows how the next observation is determined from the previous one. Use the actual estimated coefficients.

c. Which estimated coefficients are statistically significant?

d. Using 0 in place of all estimated coefficients that are not statistically significant write down the model that shows how the next observation is determined from the previous one. What kind of process is this? e. Write a brief paragraph summarizing your results as support for the random walk theory of market behavior.

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Reference no: EM131811065

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