PRMIA Exam 8007 Topic 1 Question 17 Discussion

Actual exam question for PRMIA's Mathematical Foundations of Risk Measurement ? 2015 Edition exam

Question #: 17
Topic #: 1

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

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

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

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

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

Show Suggested Answer

Suggested Answer: D

by Belen at May 03, 2022, 05:27 PM

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