The problem of autocorrelation refers to
A)independent variables in a regression equation whose values are closely related to each other.
B)insufficient data to estimate regression coefficient values.
C)regression coefficient values which are not significantly different from zero.
D)regression equation variables which exhibit a similar pattern in their values over a number of time periods.

Question

Quizplus · Accepted Answer

Autocorrelation occurs when there is a similarity in the values of the dependent variable over time. This can result in biased regression coefficients and standard errors, leading to incorrect inference and flawed predictions. Choices A, B, and C do not correctly describe autocorrelation.

The Problem of Autocorrelation Refers to