The First Step in the First Iteration of the Cochrane-Orcutt

Multiple Choice

The first step in the first iteration of the Cochrane-Orcutt method for AR(1) is to estimate the model and determine

A) the current period residuals.
B) the residuals lagged one period.
C) the current period residuals and the residuals lagged one period.
D) the current period residuals,the residuals lagged one period,and the residuals lagged two periods.