Causal models a. use the average of the most recent data values in the time series as the forecast for the next period. b. occur
whenever all the independent variables are previous values of the same time series. c. relate a time series to other variables that are believed to explain or cause its behavior. d. provide evidence of a causal relationship between an independent variable and the variable to be forecast.
d. provide evidence of a causal relationship between an independent variable and the variable to be forecast.
Step-by-step explanation:
Estimating or Forecasting the value of the variables(independent variable) using the values of one or more independent variable and the data is based on the time is said to be Causal Model.
Thus, Option (d) is correct option only i.e. provide evidence of a causal relationship between an independent variable and the variable to be forecast.
