Assume a deterministic trend model where the trend is a polynomial of order 3, that is, Yt, 0 1t 2t2 3t3 t Experiment with different values of the parameters 1, 2, 3 to generate upward or downward trends or no trend at all You are free to choose the distributional properties of the error term Plot the generated series

Question: Assume a deterministic trend model where the trend is a polynomial of order 3, that is, Yt, = 0 + 1t + 2t2 + 3t3

Assume a deterministic trend model where the trend is a polynomial of order 3, that is, Yt, = β0 + β1t + β2t2 + β3t3 + εt. Experiment with different values of the parameters β1, β2, β3 to generate upward or downward trends or no trend at all. You are free to choose the distributional properties of the error term. Plot the generated series.

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