Problem: The presence of autocorrelation leads to all of the following undesirable consequences in the regression results except:
a. the least-squares estimates of the regression coefficients will be biased
b. the t-statistics may yield incorrect conclusions concerning the significance of the individual independent variables
c. overall measures of the goodness-of-fit and explanatory power of the regression model (such as r-square and F-tests)will no longer provide reliable information as to the significance of the economic relationship
d. the least-squares procedure will tend to underestimate the sampling variances of the estimates of the regression coefficients
e. both a and b