Autocorrelation
Instructions
Answering assignment questions using set data with STATA
Answer
Definition of AutocorrelationAutocorrelation is a mathematical representation of the extent in which a given time series data is similar to its lagged version in a given successive time interval. Omitted variables in most time series tend to change slowly over time. The influence of the variable that is omitted tends to be the same from one period to the next making the error terms to correlate with one another resulting to autocorrelation of the errors. Autocorrelation measures the relationship between the current value of a variable and its past.Why Autocorrelation is a problem for OLS estimationPresence of autocorrelation in the ordinary least squares (OLS) estimation procedure will bias the variance of the coefficient estimate probability distribution. Autocorrelation is a problem for...
To avoid plagiarism, part of the answer is hidden. Click on the button below to order the full answer.
Order Answer
Back
Price Calculator
Manage orders
Why we are Ranked the best
- Unlimited Revisions
- Free 24/7 Support and chat
- Money back guaranteed
- Low prices with discounts
- Experienced writers.
- Free Unlimited support