Autocorrelation refers to a situation in which
A) successive error terms derived from the application of regression analysis to time-series data are correlated.
B) there is a high degree of correlation between two or more of the independent variables included in a multiple regression model.
C) the dependent variable is highly correlated with the independent variable(s) in a regression analysis.
D) the application of a multiple regression model yields estimates that are nonlinear in form.

Question

Quizplus · Accepted Answer

Autocorrelation occurs when successive error terms in a time-series analysis are correlated with each other, which can violate the assumptions of classical linear regression models and lead to inefficient estimates.

Autocorrelation Refers to a Situation in Which