Guest Session: 1 Question Remaining. Create Account to save progress.
Login
Linear Modelinghard
0:00.0

Consider the model Y=β0+β1X+ϵY = \beta_0 + \beta_1 X + \epsilonY=β0​+β1​X+ϵ. If the true error terms are autocorrelated such that Corr(ϵi,ϵi+1)>0Corr(\epsilon_i, \epsilon_{i+1}) > 0Corr(ϵi​,ϵi+1​)>0, what is the impact on OLS standard errors?