HW 3 answers!! - Economics 120C Professor Yongil Jeon...

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Economics 120C Name: _________________________ Professor Yongil Jeon Winter 2009 Student ID#: _________________________ Answer Key to Homework #3 – Winter 2009, Econ 120C (A part of Final Exam, Summer 2008-Session 2, Econ 120C) Answer all questions on separate paper. This problem set should be handed in to Professor Jeon at the beginning of your class on Wednesday, March 11th, 2009 . Problem sets may not be handed in once solutions have been distributed. Please write down your name and PID clearly. Good luck! Multiple Choices 1. (3 points) Departures from stationarity a. jeopardize forecasts and inference based on time series regression. b. occur often in cross-sectional data. c. can be made to have less severe consequences by using log-log specifications. d. cannot be fixed Answer : a 2. (3 points). An autoregression is a regression Answer : c
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