In the first-order autoregressive model Y_i = a₀ + a₁Y_i-1+ _i,identify the nonautocorrelated random error term.

A) a₀
B) _i
C) a₁
D) Y_i-1

First-Order Autoregressive Model

A time series model where the current value is based on a linear combination of the previous value and a stochastic error term.

Nonautocorrelated Random Error

Errors in a dataset that occur randomly and are not correlated with each other, indicating no predictable pattern in the fluctuations.

Autoregressive Model

An Autoregressive Model is a statistical model for analyzing and forecasting time series data, where future values are assumed to be a linear function of past values.