You are given the following data on electricity prices in Country A over half-hourly intervals in...

  

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You are given the following data on electricity prices in Country A over half-hourly intervals in June 2005. 1000 900 B00 700 600 500 400 300 200 100 员 ESRR Half-Hour Question 1. 1.a From the plot above, are there any deterministic components that make the data non-stationary? Expound how these deterministic trends can help you understand your data better. 1.b What test will you use to check for stationarity? What is the null hypothesis of this test (3 pts) 1.c If the data non-stationary is caused by a random or stochastic component, how would you attempt to stationarize the data? (2 points) 1.d Does the data appear to have any breaks within the period? If you are to check this quantitatively, what test would you use? (2 points) Price (SMWn) MODEL A The Parameter Estimates and their Respective P-Values for the June 2005 ARIMA Model Conditional Least Squares Estimation Parameter Estimate Standard Error I Value Approx Pr > Lag MU 113.42279 2.51453 45.11 You are given the following data on electricity prices in Country A over half-hourly intervals in June 2005. 1000 900 B00 700 600 500 400 300 200 100 员 ESRR Half-Hour Question 1. 1.a From the plot above, are there any deterministic components that make the data non-stationary? Expound how these deterministic trends can help you understand your data better. 1.b What test will you use to check for stationarity? What is the null hypothesis of this test (3 pts) 1.c If the data non-stationary is caused by a random or stochastic component, how would you attempt to stationarize the data? (2 points) 1.d Does the data appear to have any breaks within the period? If you are to check this quantitatively, what test would you use? (2 points) Price (SMWn) MODEL A The Parameter Estimates and their Respective P-Values for the June 2005 ARIMA Model Conditional Least Squares Estimation Parameter Estimate Standard Error I Value Approx Pr > Lag MU 113.42279 2.51453 45.11

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1a From the plot above are there any deterministic components that make the data nonstationary Expound how these deterministic trends can help you understand your data better Yes there are determinist... View the full answer