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E20-007 · Question #85

Refer to the exhibit. In the exhibit, a correlogram is provided based on an autocorrelation analysis of a sample dataset. What can you conclude from only this exhibit?

The correct answer is B. There is significant autocorrelation through lag 3. See the full explanation below for the reasoning.

Question

Refer to the exhibit. In the exhibit, a correlogram is provided based on an autocorrelation analysis of a sample dataset. What can you conclude from only this exhibit?

Exhibit

E20-007 question #85 exhibit

Options

  • AThere is no structure left to model in the data
  • BThere is significant autocorrelation through lag 3
  • CLag 7 has a significant negative autocorrelation
  • DDifferencing is required before proceeding with any analysis

How the community answered

(36 responses)
  • A
    17% (6)
  • B
    72% (26)
  • C
    8% (3)
  • D
    3% (1)

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