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Basic Question 1 of 5

If linear regression is used to model the relationship between two time series, and a test shows that one of the two time series has a unit root, we should:

A. not use linear regression.
B. safely use linear regression if the time series are co-integrated.
C. not use linear regression if the time series are not co-integrated.

User Contributed Comments 1

User Comment
wtwaf key words: one of the two

good question!
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe supervised machine learning, unsupervised machine learning, and deep learning;

CFA® 2025 Level II Curriculum, Volume 1, Module 5.