In the context of autocorrelation in time series analysis, consider the following statements:
1) Autocorrelation refers to the correlation of a variable with its own past values.
2) The Durbin-Watson statistic is used to test for first-order autocorrelation in a regression model.
3) Autocorrelation violates the assumption of independent errors, but it does not affect the unbiasedness of OLS estimators.
Which of the following options is correct?
1
Only statements 1 and 2 are correct
2
Only statements 1 and 3 are correct
3
Only statements 2 and 3 are correct
4
All statements 1, 2, and 3 are correct
5
Question Not Attempted