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. Author manuscript; available in PMC: 2015 Mar 12.
Published in final edited form as: J Finance. 2014 Mar 17;69(2):907–946. doi: 10.1111/jofi.12126

Figure 3. Process of constructing a general linear model (GLM).

Figure 3

There are two sets of regressors: target computations and additional controls. Target computations reflect the signals of interest whereas additional controls are used to clean up noise that is inherent in the BOLD signal. Because target computations are induced by neural activity, we convolve these regressors, while we do not convolve additional controls because these variables do not trigger a hemodynamic response. Finally, we enter the two sets of variables, one of which is convolved, into a GLM with AR(1) noise.