The autocorrelation parameter defined as ρ =

The autocorrelation parameter defined as

ρ = cov(∈t,∈t−1)var(∈t)ρ = cov(∈t,∈t-1)var(∈t)

is used to measure

Multiple Choice

disturbances of independent random variables.

correlation between regression error terms.

the Durbin-Watson statistic.

the difference between the forecast and the estimated regression line.