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3. (a) Explain what you understand by the concept autocorrelation in the context of regression analysis mention the...

Question:

3. (a) Explain what you understand by the concept autocorrelation in the context of regression analysis mention the possible

3. (a) Explain what you understand by the concept autocorrelation in the context of regression analysis mention the possible causes. and (b) Describe using standard notations, a simple linear regression model in which it is known that a first order autocorrelation is present. (c) For the model in (b) above, obtain a general term for the model error and comment on the (i) first moment (ii) second moment and (iii) autocovariance

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