If the Residuals of a Model Containing Lags of the Dependent

question 20

Multiple Choice

If the residuals of a model containing lags of the dependent variable are autocorrelated, which one of the following could this lead to?

• A) Biased but consistent coefficient estimates
• B) Biased and inconsistent coefficient estimates
• C) Unbiased but inconsistent coefficient estimates
• D) Unbiased and consistent but inefficient coefficient estimates.

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Definitions:

Acceptable Proofs

Evidence or arguments that are considered sufficient or convincing in establishing truth, validity, or authenticity.

Critical Thinker

An individual who engages in the process of critically assessing and evaluating information to form a well-justified conclusion.

Weak Logic

Reasoning or argumentation that is flawed, unsound, or lacks sufficient evidence, making the conclusion unreliable.

Four Tests

A set of criteria or checks used to evaluate the validity or reliability of a concept, argument, or piece of evidence.