In Presence of Serial Correlation, the OLS Variance Formula Accurately

question 21

True/False

In presence of serial correlation, the OLS variance formula accurately estimates the true variance of the OLS estimator.

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Definitions:

Narrow Framing

Making decisions without considering all implications or by overly focusing on a narrow set of factors.

Affect Heuristic

A mental shortcut in decision-making influenced by emotions, where people rely on feelings rather than detailed analysis.