i. Autocorrelation often happens when data has been collected over periods of time. ii. Homoscedasticity occurs when the variance of the residuals (Y - Y') is different for different values of Y'.
iii. Violating the need for successive observations of the dependent variable to be uncorrelated is called autocorrelation.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

- Autocorrelation does indeed often occur in time series data, where successive observations can be correlated with each other.- Homoscedasticity actually refers to the assumption that the variance of the residuals is constant across all levels of the independent variable, not different as stated.- The definition of autocorrelation provided in (iii) is correct, as it involves the correlation of a variable with itself across different time intervals.

I Autocorrelation Often Happens When Data Has Been Collected Over