In the context of econometrics, when analyzing serially correlated errors, which type of data should be considered?
Understand the Problem
The question is asking which type of data is appropriate to analyze serially correlated errors in econometrics. It requires understanding the different types of data used in econometric analysis.
Answer
Time series data.
Time series data should be considered when analyzing serially correlated errors in the context of econometrics.
Answer for screen readers
Time series data should be considered when analyzing serially correlated errors in the context of econometrics.
More Information
Time series data inherently involves observations over time, where sequential observations may influence each other. This temporal ordering makes it common to encounter serial correlation.
Tips
A common mistake is to ignore the sequential nature of time series data, leading to incorrect assumptions that observations are independent.
Sources
- Topic 2: Time Series & Autocorrelation - STAT ONLINE - online.stat.psu.edu
- CHAPTER 9: SERIAL CORRELATION - sfu.ca
