Visual Test for Serial Autocorrelation, Graphical Approach

EMETRC-6KJY5V

Which of the following would be an appropriate graphical approach to understanding whether there is suggestive evidence of serial autocorrelation?

A

Estimate an OLS regression and plot the predicted values, $\hat{y}_t$ against time, $t$.

B

Estimate an OLS regression and plot the estimated regression residuals, $\hat{\varepsilon}_t$ against time, $t$.

C

Estimate an OLS regression and plot the predicted values, $\hat{y}_t$ against the estimated regression residuals, $\hat{\varepsilon}_t$.

D

Plot the actual values of the dependent variable, $y_t$ against time, $t$.

E

Estimate an OLS regression and plot the estimated regression residuals, $\hat{\varepsilon}_t$ against the actual values of the dependent variable, $y_t$.