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a) What do you understand by the term autocorrelation? What are the consequences of autocorrelation in estimation? (5 marks) b) What are the assumptions
a) What do you understand by the term autocorrelation? What are the consequences of autocorrelation in estimation? (5 marks) b) What are the assumptions underlying the Durbin Watson statistics in testing for autocorrelation? (5 marks) c) Consider a two variable model Y = b +bX, +u, and assume the error term follows the autoregressive of order one [AR(1)] scheme, that is u, pu+v, where-1
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a Autocorrelation refers to the correlation between the error terms of a regression model at different time periods In other words it measures the degree of linear relationship between the residuals o...
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Communicating as professionals
Authors: Raymond Archee, Myra Gurney, Terry Mohan
3rd edition
170214974, 978-0170214971
