Two Series Are Said to Be Cointegrated If

question 22

Multiple Choice

Two series are said to be cointegrated if:

• A)both series are I(1) but a linear combination of them is I(0).
• B)both series are I(0) but a linear combination of them is I(1).
• C)both series have the same set of explanatory variables but a different dependent variable.
• D)both series have the same dependent variable but a different set of explanatory variables.

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Definitions:

Psychology

The scientific study of the mind and behavior, examining conscious and unconscious phenomena, as well as thought and emotion.

Evaluating Ideas

The process of critically assessing the merit, viability, or value of concepts or proposals.

Learning

The acquisition of knowledge or skills through experience, study, or being taught.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger reflex responses in dogs.