One of the methods of dealing with non-stationary data is:
A) Using a $\rho$-transformed model.
B) Using a dynamic model.
C) Using a regular OLS model while keeping non-stationarity in mind.
D) Using a differenced model.

Question

Quizplus · Accepted Answer

Differencing is a common technique used to transform non-stationary data into stationary data by subtracting the previous observation from the current observation.

One of the Methods of Dealing with Non-Stationary Data Is ρ\rhoρ

One of the Methods of Dealing with Non-Stationary Data Is $\rho$