What Usually Happens to Autocorrelation When We Add a Lagged

question 16

Multiple Choice

What usually happens to autocorrelation when we add a lagged dependent variable to the model?

• A) Autocorrelation gets bigger.
• B) Autocorrelation gets smaller.
• C) Autocorrelation stays the same.
• D) We cannot test for autocorrelation when a lagged dependent variable is included in the model.

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The total number of businesses within a specific area or category at a given time.

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Business entities owned and operated by one person, where there is no legal distinction between the owner and the business.

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