Negative autocorrelation in the change of a variable implies that
A)the variable contains only negative values.
B)the series is not stable.
C)an increase in the variable in one period is, on average, associated with a decrease in the next.
D)the data is negatively trended.

Question

Quizplus · Accepted Answer

Negative autocorrelation means that a rise in the variable in one period is more likely to be followed by a fall in the next. This implies a tendency for the variable to move in cycles or oscillations, rather than in a steady or upward trend.

Negative Autocorrelation in the Change of a Variable Implies That