Can someone help explain question #18? I know they corrected the answer in errata, but the explanation just doesn’t make sense to me. Thanks.

is the answer C… No for serial correlation adjustment and yes for estimate of alpha 0

It’s D. I’m also having issues understanding this…

where do you find the errata?

on schweser.com --> ERRATA (smone jus guided me on this) i found a trick to remember this one, Adjusted beta means we are trying to control the current beta by adjusting it… therefore the lower the alpha 1 (which is multiplied to the beta) the more controlled the beta … therefore its better to have alpha 1 lower

on schweser.com --> ERRATA (smone jus guided me on this) found a trick to remember this one, Adjusted beta means we are trying to control the current beta by adjusting it… therefore the lower the alpha 1 (which is multiplied to the beta) the more controlled the beta … therefore its better to have alpha 1 lower