Simple question but I’m confused.
Autoregressive model are notated using the AR§ format. Where p = number of lagged values.
So the book frequently using the example of an AR(1) model = b0 + b1 * x(t-1)
They also call an AR§ model with a seaosn lag: AR(1) = b0 + b1 * x(t-1) + b2 * x(t-2)
My question is why isn’t this called an AR(2) model since there are two lagged values in the equation.