Autocorrelation in Time Series Data

s(bk) calculated according to ordinary least squares procedures may overestimate the true standard deviation of the estimated regression coefficient.

Estimated regression coefficients become biased and inefficient.

MSE may seriously overestimate the variance of the error terms.

Estimated regression coefficients are still unbiased, but may be quite inefficient. (correct)

Omission of one or several key variables from the model. (correct)

Inclusion of too many key variables in the model.

Using a different regression method.

Assuming independence of error terms.

Autocorrelated (correct)

Independent

Homoscedastic

Heteroscedastic

<p>Uncorrelated or independent error terms</p> Signup and view all the answers

<p>Durbin-Watson Test</p> Signup and view all the answers