1. What is serial correlation, and why can it be a problem when time series data are analyzed?
2. What is a major cause of serial correlation?
3. Which underlying regression assumption is often violated when time series variables are analyzed?
4. Name a statistic that is commonly used to detect serial correlation.
5. You test for serial correlation, at the .01 level, with 32 residuals from a regression with two independent variables. If the calculated Durbin-Watson statistic is equal to 1.0, what is your conclusion?
