A random walk process with drift

Assignment Help Business Economics

Reference no: EM13896711

A random walk process with drift:

a. should never be used in regression analysis because we will encounter the problem of spurious regression.

b. can be made stationary by taking first-differences.

c. can be made stationary by detrending.

d. is an I(0) process.

e. none of the above.

Reference no: EM13896711

Questions Cloud

Do you think a leader should focus on level one : Do you think a leader should focus on level one, or should he (or she) deal with level 2 and 3, even though some people may think this is unethical (Clawson, 2012)

About the population : If the population of Argentina was 26.5 million in 1960 and the average population growth rate is 0.6 percent per year, then Argentina's population would have been about ______ in 2000.

The firms marginal cost of production is constant : The demand function for a firm’s product is Q = P^(-3). The firm’s marginal cost of production is constant at MC(Q) = 12. Calculate the elasticity of demand, as a function of Q. Based on your answer to (c), what is the firm’s profit-maximizing price?

Explain how the sarbanes-oxley act affects the internal : Explain how the Sarbanes-Oxley Act affects the internal control

A random walk process with drift : A random walk process with drift:

What effect will this have on its optimal price : The company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effect will this have on its optimal price?

Instrumental variables : Instrumental variables:

Geoffrey bownas-anthony thwaite focusing : "Four Haiku" by Matsuo Basho (1644-1694), translated by Geoffrey Bownas & Anthony Thwaite focusing on its use of imagery, how are short poems such as "Some Good Things to Be said for Iron Age"(1970) by Gary Snyder (1930) and "In a Station of the M..

The one-period interim multiplier : Consider the model yt = a + b0*xt + b1*xt-1 + b2*xt-2 + vt where vt is an independent random error term with zero mean and constant variance. The one-period interim multiplier is:

User Account

All Pages