Autocorrelation is a problem because it causes the
A)estimated slope coefficients to be biased.
B)estimated standard errors to be incorrect.
C)data to be spuriously correlated.
D)estimated standard errors to always be too small.

Question

Quizplus · Accepted Answer

Autocorrelation, particularly in time series data, leads to incorrect estimates of the standard errors of the regression coefficients. This can result in misleading statistical inferences, such as incorrect conclusions about the significance of variables.

Autocorrelation Is a Problem Because It Causes the