ECON1064 Quantitative Analysis - Final Assessment Questions

Question 2

For each of the below ACF plots which are obtained for a time series data of 4 different variables of interest:

1. Explain the ACF plot. (2 marks).
2. Describe what the raw data is likely to look like over time. (2 marks).
3. What kind of variable is this plot likely to characterise (e.g., stock prices, exchange rates, temperature, etc.)? (2 marks).