You can de-trend your data by
A)performing OLS on the de-trended data.
B)performing weighted least squares on the initial data by diving the initial data by the estimate coefficient on the time-trend variable.
C)separately regressing the dependent variable and each of the independent on the time trend and subtracting the estimated residuals from the initial data.
D)including a time trend in your OLS regression.

Question

Quizplus · Accepted Answer

Separately regressing the dependent variable and each of the independent variables on the time trend and then subtracting the estimated residuals from the initial data will remove the effects of the time trend from the data. This method ensures that the relationship between the variables is not biased and allows for accurate analysis. OLS with a time trend included may not address the issue of autocorrelation, which can lead to biased estimates. Weighted least squares with initial data can result in biased estimates if the assumption of a linear relationship between the variables is not met.

You Can De-Trend Your Data by