Solved

To Induce Stationarity in a Deterministic Trend-Stationary Process

Question 5

Multiple Choice

To induce stationarity in a deterministic trend-stationary process


A) Regress the non-stationary series on the time trend and use the residuals
B) Difference the series once
C) Difference the series twice
D) No action is necessary because the process is already stationary

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions