Which of the following statements is/are true about autocorrelation?
A)Its presence can make the results misleading when using the two standard deviation procedure.
B)It is present if we can predict the value of one data point knowing the value of other data points in the series.
C)Some serial data are autocorrelated in ways that are not visually obvious.
D)All of these.

Question

Quizplus · Accepted Answer

A) Autocorrelation can lead to dependence between data points, which violates the assumption of independence required for the two standard deviation procedure. 
B) Autocorrelation is defined as a correlation between a time series and a lagged version of itself, indicating that knowing past values can help predict future values.
C) Autocorrelation can manifest in complex and subtle ways, making it difficult to detect just by visually inspecting the data.

Which of the Following Statements Is/are True About Autocorrelation