Question

Exercises For each data set, plot the time series, and write the exact definition, periodicity and units. Judge whether the underlying stochastic process may be first and sec- ond order weakly stationary. Explain your rationale. 77 a constant): a. LY, = b, Lc= nd d. LkY, for some integer k >0 5. The following table contains quarterly nominal GDP in U.S. (billions of dol- lars). Let Y, denote the GDP at time t and let y, In (Y). (Show your calculations in a spreadsheet, e.g., in Microsoft Excel.) e series ( Can the underlying stochastic process be weakly b. Calculate the growth rate of nominal GDP by computing the percentage c. Plot the natural logarithm of the series (y,) and compare with part i., com- stationary of any order? Explain why or why not. changes of the series, that is, gl,-100x (,-,-)/X-1

exercise 4

Answer 1