PRMIA Exam 8002 Topic 1 Question 74 Discussion

Actual exam question for PRMIA's 8002 exam

Question #: 74
Topic #: 1

If a time series has to be differenced twice in order to be transformed into a stationary series, the original series is said to be:

Anon-linear

Bintegrated of order 2

Cdifferential

Dnon-functional

Show Suggested Answer

Suggested Answer: B

by Melissa at Mar 10, 2024, 01:41 AM

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8 months ago

I disagree. I think the answer is A) non-linear because the series can have a non-linear trend.

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8 months ago

I agree with Hyun. When we difference a time series twice, it becomes integrated of order 2.

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8 months ago

I think the answer is B) integrated of order 2.

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