PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition 8007 Question # 25 Topic 3 Discussion

PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition 8007 Question # 25 Topic 3 Discussion

8007 Exam Topic 3 Question 25 Discussion:
Question #: 25
Topic #: 3

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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