What is the definition of a covariance stationary time series? Identify which of the following three time series is a stationary time series and justify your answer.
a) yt = mu + et et ~ I.I.D (0,sigma)
b) yt = Beta 0 + Beta i trend + et et ~ I.I.D (0,sigma)
c) yt = mu + et et ~ I.D (0,sigma)
I need help in the above question. (mu) stands for the sign shaped like "u".
Explanation are... View the full answer