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:

Time Pressures

The stress or urgency to complete tasks or make decisions within a limited timeframe.

Unreasonable Standards

Expectations or benchmarks that are excessively high, unrealistic, or unattainable.

Conflict Trigger

An event, situation, or communication that initiates or escalates a conflict between individuals or groups.

Communication Breakdowns

Failures in communication processes, resulting in misunderstandings, errors, or conflict.