QUESTION 16 Which of the following statements is correct? a. Weakly dependent processes are said to be integrated of order one, or I(1). b.Unit root processes, such as a random walk (with or without drift) are said to be integrated of order zero, or I(0). c. The first difference of a time series that is I(1) is weakly independent (and often stationary). Thus, when we suspect processes are I(1), we often first difference in order to use them in regression analysis. d.All of the above.
QUESTION 16 Which of the following statements is correct? a. Weakly dependent processes are said to be integrated of order one, or I(1). b.Unit root processes, such as a random walk (with or without drift) are said to be integrated of order zero, or I(0). c. The first difference of a time series that is I(1) is weakly independent (and often stationary). Thus, when we suspect processes are I(1), we often first difference in order to use them in regression analysis. d.All of the above.
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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Transcribed Image Text:Economics
QUESTION 16
Which of the following statements is correct?
a. Weakly dependent processes are said to be
integrated of order one, or I(1).
b.Unit root processes, such as a random walk (with
or without drift) are said to be integrated of
order zero, or I(0).
c. The first difference of a time series that is I(1) is
weakly independent (and often stationary). Thus,
when we suspect processes are I(1), we often
first difference in order to use them in regression
analysis.
d.All of the above.
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