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
Q1: Including a lagged dependent variable in an
Q2: Please describe the steps involved in diagnosing
Q3: Using equations, describe/show the steps needed to
Q4: Explain the three ways in which a
Q6: One of the methods of dealing
Q7: A stationary variable has:<br>A) The same distribution
Q8: The interpretation of the coefficient in
Q9: Describe how you interpret the coefficient results
Q10: One way to detect autocorrelation is to
Q11: We face the largest risk of