Author Question: A line chart is created by plotting the values of the variable on the vertical axis and the time ... (Read 33 times)

clmills979 · **on:** Aug 1, 2018

A line chart is created by plotting the values of the variable on the vertical axis and the time periods on the horizontal axis.
Indicate whether the statement is true or false

Question 2

According to the chapter, regression models based on time series data are especially susceptible to autocorrelation. Why?

srodz · **Reply #1 on:** Aug 1, 2018

Answer to Question 1

T

Answer to Question 2

a) Key independent (x) variables that have not been included in the model are likely to be related to time. b) Omission of one or more of these independent variables will tend to yield residuals (errors) that are also related to time.