The following is not an appropriate way to tell whether two variables are cointegrated:
A) see if the two variables are integrated of the same order.
B) graph the series and see whether they appear to have a common stochastic trend.
C) perform statistical tests for cointegration.
D) use expert knowledge and economic theory.
Question 2
In a VECM,
A) past values of Yt - Xt help to predict future values of Yt and/or Xt.
B) errors are corrected for serial correlation using the Cochrane-Orcutt method.
C) current values of Yt - Xt help to predict future values of Yt and/or Xt.
D) VAR techniques, such as information criteria, no longer apply.
Scattergrams are a mechanism used by political scientists to show patterns and relationships among v
Independent and Dependent Variables
Calculate the physical variables
Discrete random variables- Probability Distribution Function
Discrete random variables- Probability Distribution Function
Discrete random variables- Probability Distribution Function