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Problem 1:
(a) Using examples explain the concept of cointegration.(b) Explain the term ‘stationarity' and its importance.(c) Differentiate between stochastic and deterministic trends?
Problem 2:
Write short notes on the following: (a) Unit root tests (b) 3 S's (c) Spurious regression (d) Dummy variable trap (e) CLRM assumptions
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whits tests
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Over the next two years, Susan's income will be $33,000 in the first year and $33,000 in the second year. She can both borrow and lend money at the 10% of annual interest. (a) W
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