Question

Serial correlation (or autocorrelation) causes estimates of the slope parameter β to be overestimated on average....

Serial correlation (or autocorrelation) causes estimates of the

slope parameter β to be overestimated on average.

estimates of the standard errors to be understated on average.

estimates of the T values of be understated on everage.

slope parameter β to be understated on average.

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Answer:

Hence the standard errors are understated and T values are overstated

Option B

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