2: Time Series Models Flashcards
1
Q
Covariance stationary is when the mean & variance:
A
Do not change over time
2
Q
To test for Covariance Stationarity:
A
- Plot data
- Run an AR model
- test correlations
- Perform Dickey Fuller test
3
Q
Unit roots are eliminated by:
A
First differencing
4
Q
Use a log-linear trend model with:
A
constant % growth rates
or
exponential growth
