The time series theoretical question is: give the alternatives of iid in time series analysis. Next give the regression differences of spurious from cointegrating. The details are the following:

One fundamental assumption for econometric methods with cross sectional data is that the variables are independently and identically distributed (i.i.d). Explain why this assumption is not appropriate for time series data and explain how this assumption is replaced in time series econometrics. (4 marks) Explain how you would distinguish between a spurious regression and a cointegrating regression. Give an example of a cointegrating relationship in economics or finance. (6 marks)