I now estimate an ARCH model. In the regression equation, we have the change in the US dollar, ΔE_t, as the dependent va

[answerhappygod]

I now estimate an ARCH model. In the regression equation, we
have the change in the US dollar, ΔE_t, as the dependent variable
and an intercept. First, write down the specification for the
volatility equation corresponding to the output below. Second,
comment on the output. Third, discuss whether I should increase or
reduce the number of lagged terms included in the volatility
equation. Optimal Parameters
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Estimate Std. Error t value Pr(>|t|) mu 0.017323 0.024220
0.71525 0.474457 omega 0.378198 0.029551 12.79797 0.000000 alpha1
0.249069 0.050527 4.92941 0.000001 alpha2 0.142657 0.041438 3.44265
0.000576