If OLS is used in the presence of autocorrelation, which of the following will be likely consequences? i) Coefficient estimates may be misleading ii) Hypothesis tests could reach the wrong conclusions iii) Forecasts made from the model could be biased iv) Standard errors may inappropriate Answers: a- (ii) and (iv) b- (i) and (iii) c- (i), (ii), (iii) and (iv) d- (i), (ii) and (iii)

If OLS is used in the presence of autocorrelation, which of the following will be likely consequences? i) Coefficient estimates may be misleading ii) Hypothesis tests could reach the wrong conclusions iii) Forecasts made from the model could be biased iv) Standard errors may inappropriate Answers: a- (ii) and (iv) b- (i) and (iii) c- (i), (ii), (iii) and (iv) d- (i), (ii) and (iii)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If OLS is used in the presence of autocorrelation, which of the following will be likely consequences?

i) Coefficient estimates may be misleading

ii) Hypothesis tests could reach the wrong conclusions

iii) Forecasts made from the model could be biased

iv) Standard errors may inappropriate

Answers:

a- (ii) and (iv)

b- (i) and (iii)

c- (i), (ii), (iii) and (iv)

d- (i), (ii) and (iii)

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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