A given time-series is said to have a time-trend if
A)an unexpected shift in time-series data.
B)the data trend upward or downward over time.
C)a number of outliers in cross-section data.
D)an independent variable is correlated with the dependent variable but there is no theoretical justification for the relationship.

Question

Quizplus · Accepted Answer

A time-trend refers to a pattern of gradual change over time in the data, either upward or downward. It is different from unexpected shifts or spikes in the data (option A) and from outliers in a cross-sectional dataset (option C). Option D is incorrect because a time-trend does not necessarily imply a correlation between variables.

A Given Time-Series Is Said to Have a Time-Trend If