A non-stationary series is one whose statistical properties change over time.
15. What does it mean for a time series to be non-stationarity, and what are the...
4. What major tests do you use to test for unit roots in time series? (give the names of two tests). What major tests do you use to test for unit roots in panel data? (give the names of three panel unit root tests). 5. Suppose by using the VIF test, you find that there is a multicollinearity in the regression output, which makes most of the independent variables insignificant while the R-squared is high. How do you deal with...
Question 2. (4 marks) It has been stated that 'Time has value.' What does this mean when we are evaluating a series of cash flows? Problems Please note: show the formula you are using and your work! Use and show time lines. Marks will be assigned for the presentation of the time lines and the relevant information. Problem 1. (8 marks) Your friend is talking to you about one of their investments. They stated that they invested in 1- Can't-Believe-It...
Question 1 From the U.K. private sector housing starts (X) for the period 1948 to 1984, Terence Mills obtained the following regression results': AX,31.03 0.188x, se(12.50) (0.080) 2.35) Note: The 5 percent critical t value is-2.95 and the 10 percent critical value is 2.60 a. On the basis of these results, is the housing starts time series station- ary or npnstationary? Alternatively, is there a unit root in this time se- ries? How do you know? l b. If you...
Suppose that a particular RC series circuit has a time constant of 5.0 seconds. What does that mean in terms of the charging and discharging? How would this circuit compare to the ones you tried? Explain qualitatively and quantitatively. What could be a practical application of an RC circuit ?
(e) Suppose that we reject the null hypothesis, what does that imply about OLS estimatron of the regression equation of ve? (Hint: does this problem affect unbiasedness or c ciency of OLS estimators?) (d) (10 pts bonus) Solve the problem by completely specifying the regression model. 630 pts) Suppose & is the residual of the following regression (a) If we are also running the regression what OLS assumption of time series data we suspect is violated (what time series prob-...
Prepare:
Context: What do the data mean? What is the goal of the
study?
Source: What is the source objective, is the source
biased?
Sampling: Does the method influence the validity of the
conclusion? Voluntary response (self-selected?) Bias?
In the previous RW0, you opened the dataset that we will use
throughout the semester for all RW’s. You identified the variables
and variable types.
Below is a description of the data, how it was collected, and
what the variables mean. Use...
please answer all questions and show all the work
What does it mean for a sequence to converge? What does it mean for a series to converge? What does it mean for a series to converge absolutely? If a 2 Hint: There is no antiderivative of the standard normal curve, even of its easier-looking avatar e , that is expressible using elementary functions. But how then do we know there is any antiderivative of this function to speak of at...
Using a computer package, find the degree of differencing needed to make the thermostat sales time series stationary. Then use the computer package to identify a Box-Jenkins model for forecasting thermostat sales. Perform appropriate diagnostic tests a. unit root testing is scope of this book, but an interested reader ght start by looking at a paper by Dickey, Bell, and 8 ller (1986) after mastering the notation in Chapter of this text. Taking differences when it is not cessary to...
Answer the following fundamental questions for each time series
(exercise 1-10):
i. What is measured? (definition of the time series)
ii. How is it measured? (measurement units)
iii. What is the periodicity? (frequency of the series)
iv. What are the dominant features of the time series? (trends,
non-seasonal cycles, seasonal cycles)
We were unable to transcribe this image18 CHAPTER 1 Introduction and Context FIGURE E.2 Saving Rate (%). Monthly Data 1988/ ,m/i 01-2008/02 4 0 -2 01-88 01-90 01-92 01-94...
Using the current system, the mean wait time for people who call for technical support is 5 minutes. A new system was designed to reduce the mean wait time. A random sample of 400 calls produced a sample average of 4.650. The standard deviation of wait times is known to be 4. We want to know whether the new software changed the mean. 1. What is the null hypothesis and what is the alternative hypothesis? 2. What is the value...