Multiple Choice
Which of the following statements is true?
A) A random walk process is stationary.
B) The variance of a random walk process increases as a linear function of time.
C) Adding a drift term to a random walk process makes it stationary.
D) The variance of a random walk process with a drift decreases as an exponential function of time.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: A covariance stationary time series is weakly
Q16: If adding one more lag of the
Q17: Which of the following is true if
Q18: Under adaptive expectations, the expected current value
Q19: Weakly dependent processes are said to be
Q21: Covariance stationary sequences where Corr(xt + xt+h)
Q22: If u<sub>t</sub> refers to the error term
Q23: Sequential exogeneity is implied by dynamic completeness.
Q24: Consider the model: y<sub>t</sub> = <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8272/.jpg"
Q25: If a process is a covariance stationary