Question

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

Answer 1

Answer: Option (C)

Step-by-step explanation:

A causal model also referred to as a structural causal model is known as a conceptual model which describes causal mechanisms or process of a system. These models can also improve the study designs, they do so by providing rules which are clear for deciding which of the independent variables is required to controlled. Causal models tends to relate time series to several other variables which are believed or known to explain the behavior.