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    Principles of Econometrics
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    Exam 10: Regression With Time Series Data: Stationary Variables
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    Which Assumption Is Most Likely to Be Violated with Times\(\sigma\)
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Which Assumption Is Most Likely to Be Violated with Times σ\sigmaσ

Question 19

Question 19

Multiple Choice

Which assumption is most likely to be violated with times series data:


A) E(et) =0
B) var (et) = σ\sigmaσ 2
C) cov(et,es) =0,t≠s
D) et N(0, σ\sigmaσ 2)

Correct Answer:

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