When the errors in a regression model have AR(1) serial correlation, why do the OLS standard errors tend to underestimate the sampling variation in the B;? Is it always true that the OLS standard errors are too small?
When the errors in a regression model have AR(1) serial correlation, why do the OLS standard errors tend to underestimate the sampling variation in the B;? Is it always true that the OLS standard errors are too small?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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![When the errors in a regression model have AR(1) serial correlation, why do the OLS standard errors
tend to underestimate the sampling variation in the B;? Is it always true that the OLS standard errors
are too small?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e524648-cdd0-454e-a15e-8c4e51665f4d%2F5870e2c8-9620-42b2-889d-e00db23873e2%2Fcyk8n9e.png&w=3840&q=75)
Transcribed Image Text:When the errors in a regression model have AR(1) serial correlation, why do the OLS standard errors
tend to underestimate the sampling variation in the B;? Is it always true that the OLS standard errors
are too small?
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