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:

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