Assume a deterministic trend model where the trend is a polynomial of order 3, that is, Yt,

Question:

Assume a deterministic trend model where the trend is a polynomial of order 3, that is, Yt, = β0 + β1t + β2t2 + β3t3 + εt. Experiment with different values of the parameters β1, β2, β3 to generate upward or downward trends or no trend at all. You are free to choose the distributional properties of the error term. Plot the generated series.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: