Question #16
Reading: Reading 2 Time-Series Analysis
PDF File: Reading 2 Time-Series Analysis.pdf
Page: 6
Status: Unattempted
Correct Answer: A
Question
A time series that has a unit root can be transformed into a time series without a unit root through:
Answer Choices:
A. first differencing
B. mean reversion
C. calculating moving average of the residuals
Explanation
First differencing a series that has a unit root creates a time series that does not have a
unit root.