Serial Correlation Occurs When

question 39

Multiple Choice

Serial correlation occurs when:

• A) the value of the random error in one period depends on one or more independent variables.
• B) the random errors are correlated over time.
• C) the values of two or more regression coefficients are correlated.
• D) two or more independent variables tend to move together.
• E) the size of the random error increases over time.

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Definitions:

Productive Activity

An action or task that generates a valuable output or result, contributing to goals or objectives.

Unanimity

A state or condition of complete agreement or consensus among all members of a particular group or body.

Distinctiveness

The quality or condition of being unique or distinguishable from others, notably in terms of characteristics or features.

Consistency

The degree to which a person's actions, beliefs, performance, or results remain stable and reliable over time.