Multiple Choice
Which of the following correctly states concerns about stationarity for the following model:
Yt = Yt-1 + 0 + 1Xt + t
A) If 1, the model is stationary and spurious regression results are likely.
B) If =1, the model will "blow up" as Y will get larger and larger in every period.
C) If 1, the model will "blow up" as Y will get larger and larger in every period.
D) If =1, the model is stationary and spurious regression results are likely.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Which of the following is the
Q9: In autoregressive models, the dependent variable depends
Q10: The interpretation of the coefficient in a
Q11: Using equations, describe/show the steps needed to
Q12: Explain the three ways in which a
Q14: In time series data, if errors are
Q15: The interpretation of the coefficient in
Q16: We face the largest risk of
Q17: Which of the following is the most
Q18: Which of the following is one way