If a "break" occurs in the population regression function, then
A) inference and forecasting are compromised when neglecting it.
B) an Augmented Dickey Fuller test, rather than the Dickey Fuller test, should be used to test for stationarity.
C) this suggests the presence of a deterministic trend in addition to a stochastic trend.
D) forecasting, but not inference, is unaffected, if the break occurs during the first half of the sample period.
Ans: A) inference and forecasting are compromised when neglecting it.
You might also like to view...
Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is
A) an hour of tennis given u
The transactions demand for money will increase when
A) the rate of interest increases. B) the price level falls. C) nominal Gross Domestic Product (GDP) increases. D) nominal Gross Domestic Product (GDP) decreases.