Deterministic trends are:
A) Where variables change by some random amount in each time period.
B) Always constant and dependent of time for the series being analyzed.
C) Constant, positive or negative independent of time for the series being analyzed.
D) Always positive.

Question

Quizplus · Accepted Answer

Deterministic trends are always constant and can be positive or negative, but they are not random (A) or always positive (D). They are also dependent on time, but not necessarily always constant over time (B).

Deterministic Trends Are