PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement 8002 Question # 31 Topic 4 Discussion

PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement 8002 Question # 31 Topic 4 Discussion

8002 Exam Topic 4 Question 31 Discussion:
Question #: 31
Topic #: 4

When the errors in a linear regression show signs of positive autocorrelation, which of the statements below is true?


A.

The regression coefficient will be too high and the standard error of the regression coefficient will be understated


B.

The regression coefficient will be too low and the standard error of the regression coefficient will be overstated


C.

The regression coefficient will be unbiased, but the standard error of the regression coefficient will be understated


D.

The regression coefficient will be unbiased, but the standard error of the regression coefficient will be overstated


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