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Basic Question 2 of 6

The presence of serially correlated errors can indicate that

I. something systematic has been omitted from the model.
II. an incorrect functional form has been estimated.
III. an important explanatory variable has been omitted.

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Lina

Lina

Learning Outcome Statements

explain serial correlation and how it affects statistical inference;

CFA® 2025 Level II Curriculum, Volume 1, Module 3.