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Basic Question 0 of 3

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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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain serial correlation and how it affects statistical inference;

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