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E20-007 · Question #116

Before you build an ARMA model, how can you tell if your time series is weakly stationary?

The correct answer is C. There appears to be a constant variance around a constant mean. See the full explanation below for the reasoning.

Question

Before you build an ARMA model, how can you tell if your time series is weakly stationary?

Options

  • AThe series is normally distributed.
  • BThe mean of the series is close to 0.
  • CThere appears to be a constant variance around a constant mean.
  • DThere appears to be no apparent trend component.

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    78% (18)
  • D
    13% (3)

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