If two variables, X, and are said to be cointegrated, which of the following statementsare true?i)X, and must both be stationary.ii)Only one linear combination of X, and X, will be stationaryii)The cointegrating equation for X, and' describes the short-run relationshipbetween the two series.iv)The residuals of a regression of" on X, must be stationary.a) (ii) and (iv) onlyb) (i) and (iii) onlyc) (i), (ii) and (iii) onlyd) (i).(ii),(iii) and (iv)

Cointegration used to measure the correlation of non-stationary time series.

If two variables, X, and are said to be cointegrated, which of the following statements are true? X, andmust both be stationary. Only one linear combination of X, and X, will be stationary i) ii) ii) The cointegrating equation for X, andrdescribes the short-run relationship between the two series. iv) The residuals of a regression of on X, must be stationary. a) (ii) and (iv) only b) (i) and (iii) only c) (i), (ii) and (ii) only d) (i),(ii),(iii) and (iv)

If two variables, X, and are said to be cointegrated, which of the following statements are true? X, andmust both be stationary. Only one linear combination of X, and X, will be stationary i) ii) ii) The cointegrating equation for X, andrdescribes the short-run relationship between the two series. iv) The residuals of a regression of on X, must be stationary. a) (ii) and (iv) only b) (i) and (iii) only c) (i), (ii) and (ii) only d) (i),(ii),(iii) and (iv)

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Concept explainers

Correlation

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.

Question

If two variables, X, and are said to be cointegrated, which of the following statements
are true?
i)
X, and must both be stationary.
ii)
Only one linear combination of X, and X, will be stationary
ii)
The cointegrating equation for X, and' describes the short-run relationship
between the two series.
iv)
The residuals of a regression of" on X, must be stationary.
a) (ii) and (iv) only
b) (i) and (iii) only
c) (i), (ii) and (iii) only
d) (i).(ii),(iii) and (iv)

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