Autocorrelation

Hello, I am studying quants from Stalla and there is something I cannot understand. Maybe it is because I am not a english native speaker… What does mean : “the independant variable is a lagged value of the dependent variable” ? Thanks for your help !

You are tracking company sales in a particular quarter for a company. Company Sales for a particular Quarter depends on Company sales from 3 quarters ago. I think the Intel example in the book says that. Here Company Sales (Dependent Variable) depends on Company Sales from 3 periods(lagged variable) (But it is the independent variable). Most time-series have this property.

CP did you not pass last year?

passed l2… doing l3 now.

Ok I understand now. Thanks a lot ! Good luck with the level 3 ! :slight_smile: cpk123 Wrote: ------------------------------------------------------- > You are tracking company sales in a particular > quarter for a company. > > Company Sales for a particular Quarter depends on > Company sales from 3 quarters ago. > > I think the Intel example in the book says that. > > Here Company Sales (Dependent Variable) depends on > Company Sales from 3 periods(lagged variable) (But > it is the independent variable). > > Most time-series have this property.

nice. dude keep up the good work.