Which of the Following Models Is Assumed for a Quarterly

question 56

Multiple Choice

Which of the following models is assumed for a quarterly time series that seems to grow on average by an increasing amount (or decline by a decreasing amount) and seems to have seasonality?

• A) ln(y_t) = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄t + ε_t
• B) y_t = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄t + ε_t
• C) ln(y_t) = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄d₄ + β₅t + ε_t
• D) y_t = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄d₄ + β₅t + ε_t

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed during infancy.

Assimilation

The process of integrating new information into existing cognitive schemas, perceptions, and understanding.

Schema

Cognitive structures that help individuals organize and interpret information, based on knowledge gained from past experiences.

Assimilated

The process by which individuals or groups of differing culture come to resemble those of the dominant group, sometimes including the adoption of language, customs, and values.