Which of the Following Statements About Autocorrelation Are True

question 48

Multiple Choice

Which of the following statements about autocorrelation are true?
I. Successive residuals are often correlated in time series because an event in one time period often influences the event in the next period.
II. If residuals are correlated,we can use r as the coefficient of correlation and conduct the common tests of hypothesis about regression coefficients.
III. A Durbin-Watson statistic d is used,instead of directly conducting a hypothesis test on r.

• A)I only
• B)II only
• C)II and III
• D)I and III

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

NSF Checks

Non-sufficient funds checks, a term used when a check cannot be honored because the drawer's account lacks enough money.

Outstanding Checks

Checks that are recorded in the financial records but haven't been cashed or processed by the bank yet.