Refer to the exhibit.
In the exhibit, a correlogram is provided based on an autocorrelation analysis of a sample dataset.
What can you conclude from only this exhibit?
A.
There is significant autocorrelation through lag 3
B.
There is no structure left to model in the data
C.
Lag 7 has a significant negative autocorrelation
D.
Differencing is required before proceeding with any analysis
At first, A and C look like the best candidates, however, between 0 and 5, we’ve got a significant autocorrelation than at lag 7. I.e.; there is more evidence for A than C.
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