Which of the following is an assumption on which time series regression is based? A)A time series process follows a model that is nonlinear in parameters. B)In a time series process, no independent variable is a perfect linear combination of the others. C)In a time series process, at least one independent variable is a constant. D)For each time period, the expected value of the error u_t, given the explanatory variables for all time periods, is positive.

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Time series regression assumes that no independent variable is a perfect linear combination of the others, meaning that each independent variable contributes unique predictive power to the model. This assumption is necessary for accurate estimation of the coefficients and for avoiding multicollinearity issues. The other options listed are either incorrect (A) or not assumptions of time series regression (C, D).

Which of the Following Is an Assumption on Which Time