Which of the Following Best Describes First-Order Autocorrelation

question 50

Multiple Choice

Which of the following best describes first-order autocorrelation?

• A)First-order autocorrelation is a condition in which there is no relationship between consecutive residuals.
• B)First-order autocorrelation is a condition in which the data is skewed.
• C)First-order autocorrelation is a condition in which consecutive residuals differ greatly.
• D)First-order autocorrelation is a condition in which a relationship exists between consecutive residuals.

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Definitions:

Fluctuation

Variations or changes in value or level, often used in the context of financial markets or economic indicators.

Interest Rates

The cost of borrowing money or the return on savings, typically expressed as a percentage.

Trade Surpluses

An economic condition that occurs when a country's exports exceed its imports over a certain period of time, indicating a positive balance of trade.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.