The First Step in the First Iteration of the Cochrane-Orcutt

question 47

Multiple Choice

The first step in the first iteration of the Cochrane-Orcutt method for AR(1) is to estimate the model and determine

• A)the current period residuals.
• B)the residuals lagged one period.
• C)the current period residuals and the residuals lagged one period.
• D)the current period residuals,the residuals lagged one period,and the residuals lagged two periods.