The Third Step in the First Iteration of the Cochrane-Orcutt $\hat { \rho }$

Multiple Choice

The third step in the first iteration of the Cochrane-Orcutt method for AR(1) is to

A) use the estimate of $\hat { \rho }$ to adjust the dependent variable.
B) use the estimate of $\hat { \rho }$ to adjust the independent variables.
C) use the estimate of $\hat { \rho }$ to adjust the dependent variable and the independent variables.
D) use the estimate of $\hat { \rho } _ { 1 }$ and $\hat { \rho } _ { 2 }$ to adjust the dependent variable and the independent variables.