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Basic Question 0 of 3

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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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe types and characteristics of non-mortgage asset-backed securities, including the cash flows and risks of each type

CFA® 2025 Level I Curriculum, Volume 4, Module 18.