A stochastic process {xt: t = 1,2,….} with a finite second moment [E(xt2) < 
] is covariance stationary if:
A. E(xt) is variable, Var(xt) is variable, and for any t, h
1, Cov(xt, xt+h) depends only on ‘h' and not on ‘t'.
B. E(xt) is variable, Var(xt) is variable, and for any t, h
1, Cov(xt, xt+h) depends only on ‘t' and not on h.
C. E(xt) is constant, Var(xt) is constant, and for any t, h
1, Cov(xt, xt+h) depends only on ‘h' and not on ‘t'.
D. E(xt) is constant, Var(xt) is constant, and for any t, h
1, Cov(xt, xt+h) depends only on ‘t' and not on ‘h'.
Answer: C
You might also like to view...
Provide some examples of industries near your school that operate in monopolistic competition (excluding those given on the text page in the figure)
What will be an ideal response?
The long-run Phillips curve is a upward-sloping line at the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
Industrial unions offer membership to all workers in a specific industry
Indicate whether the statement is true or false
The wealth effect explains the:
A. downward-sloping aggregate demand curve. B. downward-sloping aggregate supply curve. C. upward-sloping aggregate demand curve. D. upward-sloping aggregate supply curve.