However, real-world data often does not meet this requirement; it is autocorrelated ( also known as serial correlation ).
12.
Low serial correlations ( around 0.05 ) exist in the short term, and slightly stronger correlations over the longer term.
13.
For example, it is not suitable for a Monte Carlo simulation because of the serial correlation ( among other things ).
14.
The model generates each storm randomly; there is no serial correlation, and the order of storms does not reflect seasonal patterns.
15.
The assumption is of serial correlation, i . e . once in a trend, the market is likely to continue in that direction.
16.
Although serial correlation does not affect the consistency of the estimated regression coefficients, it does affect our ability to conduct valid statistical tests.
17.
If the Durbin Watson statistic indicates the presence of serial correlation of the residuals, this can be remedied by using the Cochrane Orcutt procedure.
18.
There was speculation that this would cause the next couple years to be cooler because of the large serial correlation in the global temperatures.
19.
Second, positive serial correlation typically causes the ordinary least squares ( OLS ) standard errors for the regression coefficients to underestimate the true standard errors.
20.
Because the test is based on the idea of Lagrange multiplier testing, it is sometimes referred to as "'LM test for serial correlation . "'
