Linear Modelinghard
0:00.0

Consider the model Y=β0+β1X+ϵY = \beta_0 + \beta_1 X + \epsilon. If the true error terms are autocorrelated such that Corr(ϵi,ϵi+1)>0Corr(\epsilon_i, \epsilon_{i+1}) > 0, what is the impact on OLS standard errors?