A Test to Determine Whether or Not First-Order Autocorrelation Is

question 16

Multiple Choice

A test to determine whether or not first-order autocorrelation is present is

• A)a t test
• B)an F test
• C)a test of interaction
• D)a chi-square test

---

Definitions:

Risk Averse

The preference to avoid uncertainty, expressing a behavior where individuals prefer known risks over unknown outcomes.

Financial Investment

Allocating money into an asset or a project with the expectation of generating income or profit.

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.

Moral Hazard

The situation where one party in a transaction has the opportunity to take risks because they know the other party will bear the costs.