The Order of Integration

question 35

Multiple Choice

The order of integration

• A)can never be zero.
• B)is the number of times that the series needs to be differenced for it to be stationary.
• C)is the value of φ1 in the quasi difference(ΔYt - φ1Yt-1).
• D)depends on the number of lags in the VAR specification.

---

Definitions:

Reversible Thinking

The ability to recognize that actions or processes can be undone, leading to the original state or condition.

Centration

A cognitive limitation in early childhood, where a child focuses on one aspect of a situation or object and ignores others.

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage hypothetical situations.

Sequential

Describes a process that follows a specific order or sequence, where each step or stage comes one after the other in a logical progression.