ECON 56200 Lecture Notes - Lecture 43: Time Series, Segway Pt, Null Hypothesis
10 Jan 2020
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You get what you fucking deserve econ 562! okay, joker references aside, time series is pretty tough that was just a segway into how difficult this portion is going to be. It"s a series of data that helps us to predict what will happen in the future given what we know from the past and the present. Thus, w/ time series, we"re getting a more accurate measurement of what"s happening. Here, we have the equation yt = yt 1 + et. A. highly persistent time series tells us that our current data is highly correlated with current outcomes. If our then that signifies a persistent time series. Let"s also take into consideration other regressions: yt = yt 1 + et yt = + yt 1 + et is a random regression with no real consistency (eg stocks) is a random regression with drift change in average.
