The problem with nonstationary data
Summary
Main point from the lecture: If you run a regression \(y_t=β_1+β_2x_t+ε_t\) using nonstationary data, you may end up with a spurious regression .
Summary
Main point from the lecture: If you run a regression \(y_t=β_1+β_2x_t+ε_t\) using nonstationary data, you may end up with a spurious regression .