Multiple Choice
Which of the following identifies an advantage of first differencing a time-series?
A) First differencing eliminates most of the serial correlation.
B) First differencing eliminates most of the heteroskedastcicty.
C) First differencing eliminates most of the multicollinearity.
D) First differencing eliminates the possibility of spurious regression.
Correct Answer:
Verified
Correct Answer:
Verified
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