Question #27
Reading: Reading 2 Time-Series Analysis
PDF File: Reading 2 Time-Series Analysis.pdf
Page: 12
Status: Unattempted
Correct Answer: A
Question
Which of the following statements regarding the instability of time-series models is most accurate? Models estimated with:
Answer Choices:
A. shorter time series are usually more stable than those with longer time series
B. a greater number of independent variables are usually more stable than those with a smaller number
C. longer time series are usually more stable than those with shorter time series
Explanation
Those models with a shorter time series are usually more stable because there is less
opportunity for variance in the estimated regression coefficients between the different
time periods.