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5. Another model, which can describe the trending behavior of the time series, is the following deterministic trend model: Yt t + Et, Yo
5. Another model, which can describe the trending behavior of the time series, is the following "deterministic trend model": Yt t + Et, Yo = 0, Et ~ iid (0,0). = (DT Model) (a) Briefly desribe the difference between (UR Model) and (DT Model). (b) Explain why the economic researchers would prefer (UR Model) to (DT Model) when modelling the trending economic time series.
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a The main difference between the Unit Root UR Model and the Deterministic Trend DT Model lies in ho...
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Statistics For Business Decision Making And Analysis
Authors: Robert Stine, Dean Foster
2nd Edition
978-0321836519, 321836510, 978-0321890269
