To Induce Stationarity in a Deterministic Trend-Stationary Process

question 5

Multiple Choice

To induce stationarity in a deterministic trend-stationary process

• A) Regress the non-stationary series on the time trend and use the residuals
• B) Difference the series once
• C) Difference the series twice
• D) No action is necessary because the process is already stationary

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Not Reasonably Practicable

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