serial correlation happens when:
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There is high correlation between the consequent error terms of the regression. |
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There is high correlation between two or more of the independent variables. |
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There is high correlation between some of the independent variables and the error terms. |
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There is high correlation between the dependent variable and the error terms. |
The answer is:
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There is high correlation between the consequent error terms of the regression. |
Serial correlation occurs in time series analysis. Here the errors associated with a given time period carry over the future time periods, leading to a high correlation between the consequent error terms of the regression.
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serial correlation happens when: There is high correlation between the consequent error terms of the regression....
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