Assignment:
A series of daily closing stock prices for ISC Corporation were analyzed using ARIMA modeling. The data were first differenced and then the following models were fit: ARIMA (1,1,0), ARIMA (0,1,1) and ARIMA (1,1,1). Based on the Minitab output shown below, which of the following statements is true?
Select one:
a. The parameter of the ARIMA (1,1,0) model is significant and the Box-Pierce Q statistics indicate that the residuals are random therefore this model is adequate.
b. The parameter of the ARIMA (0,1,1) model is significant and the Box-Pierce Q statistics indicate that the residuals are random therefore this model is adequate.
c. The parameters of the ARIMA (1,1,1) model are significant and the Box-Pierce Q statistics indicate that the residuals are random therefore this model is adequate.
d. Both A and C.
e. All of the above.