Determining the number of lagged terms

Reference no: EM132171586

Question: What is wrong with the strategy of determining the number of lagged terms in a distributed lag model sequentially, that is, adding each successive lagged term if the t value of an added lagged term is statistically significant? In other words, you go on adding a lagged term as long as the t value of the added lagged term is statistically significant on the basis of the t test.

Reference no: EM132171586

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