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E20-007 · Question #5

E20-007 Question #5: Real Exam Question with Answer & Explanation

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Question

You are analyzing a time series and want to determine its stationarity. You also want to determine the order of autoregressive models. How are the autocorrelation functions used?

Options

  • APACF as an indication of stationarity,and ACF for the correlation between Xt and Xt-k not explained
  • BACF as an indication of stationarity,and PACF for the correlation between Xt and Xt-k not explained
  • CACF as an indication of stationarity,and PACF to determine the correlation of X1 through Xk-1.
  • DPACF as an indication of stationarity,and ACF to determine the correlation of X1 through Xk-1.

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