The Following Is Not a Consequence of X_t $X _ { t }$

question 5

Multiple Choice

The following is not a consequence of X_t and Y_t being cointegrated:

• A) if \(X _ { t }\) and Y_t are both I(1) , then for some \(\theta , Y _ { t } - \theta X _ { t } \text { is } I ( 0 )\)
• B) \(X _ { t } \text { and } Y _ { t }\) have the same stochastic trend.
• C) in the expression \(Y _ { t } - \theta X _ { t } , \theta\) is called the cointegrating coefficient.
• D) if \(X _ { t } \text { and } Y _ { t }\) are cointegrated then integrating one of the variables gives you the same result as integrating the other.

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Definitions:

Average Flow Time

The average time that it takes for a product to go through the entire supply chain, from procurement of raw materials to the delivery of the final product.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out.

Digestive Tract

The series of organs in the body through which food passes, nutrients are absorbed, and waste is eliminated.

Muscle Tissue

A tissue composed of fibers capable of contracting to effect bodily movement.