The Third Step in the First Iteration of the Cochrane-Orcutt $\hat { \rho }$

question 39

Multiple Choice

The third step in the first iteration of the Cochrane-Orcutt method for AR(1) is to

• A)use the estimate of \(\hat { \rho }\) to adjust the dependent variable.
• B)use the estimate of \(\hat { \rho }\) to adjust the independent variables.
• C)use the estimate of \(\hat { \rho }\) to adjust the dependent variable and the independent variables.
• D)use the estimate of \(\hat { \rho } _ { 1 }\) and \(\hat { \rho } _ { 2 }\) to adjust the dependent variable and the independent variables.