The minimum number of times a series must be differenced to generate a stationary series is the
A)unit root
B)order of integration
C)trend coefficient
D)spurious regression degree

Question

Quizplus · Accepted Answer

The order of integration, also known as the degree of differencing, represents the minimum number of times a series must be differenced to make it stationary. A stationary series has a constant mean and variance over time, making it easier to model and analyze. If a series is not stationary and contains a unit root, it must be differenced to remove the non-stationary component.

The Minimum Number of Times a Series Must Be Differenced