Which Statement Is Not Correct

question 8

Multiple Choice

Which statement is not correct?

• A)Spurious correlation can often be reduced by expressing X and Y in per capita terms.
• B)Autocorrelation is mainly a concern when we are using time-series data.
• C)Heteroscedastic residuals will have roughly the same variance for any value of X.
• D)Standardized residuals make it easy to identify outliers or instances of poor fit.

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Definitions:

Utility Function

A mathematical representation in economics that captures the satisfaction or utility a consumer derives from consuming goods or services.

Butter

A dairy product made from churning cream or milk, containing a high percentage of fat and used as a spread or in cooking.

Guns

Firearms designed to discharge projectiles at high velocities, commonly associated with defense, hunting, and sports.

Price

The fiscal valuation presumed, demanded, or paid out in purchase of a product.