Which of the following is correct regarding using BIC to select orders for  ARMA-GARCH and VAR models?

Which of the following correctly describes deterministic covariates in a VARX(pp)?

Which statement correctly describes the ARCH model’s variance structure?

Which are valid features or requirements of a Structural VAR?

Which of the following best describes how univariate AR(pp) causality relates to stability in the VAR(pp)?

Which of the following is correct about incorporating volatility clustering into an ARMA residual process?

Which statements accurately characterize why heteroskedasticity models (ARCH/GARCH) are introduced for certain time series?

Which statements reflect important conditions or implications for a stationary multivariate time series?

Part A: MC Questions (13 Points)

Which statement is correct about an ARCH(qq) process with time‐varying conditional variance?