For each of the following, tell whether it is likely to be stationary or nonstationary and why.
Question:
a. The price per share of IBM stock, recorded daily.
b. The prime rate, recorded weekly. This is the interest rate that banks charge their best customers for their loans.
c. The thickness of paper, measured five times per minute as it is being produced and rolled, assuming that the process is in control.
d. The price of a full-page advertisement in TV Guide, recorded each year.
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a This should be nonstationary because stock prices tend to follow a random wa...View the full answer
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