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📅 May 16, 2026 👤 scraface

May 16, 2026

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📌 C: Autocorrelation in cross-sectional data

📌 D: Perfect multicollinearity among climate variables

📌 Correct: B Endogeneity caused by omitted variable bias

📌 Question: A science journalist investigating long-term solar irradiance trends and global temperatures notices that both variables exhibit stochastic trends. Before comparing their relationship, what is the most appropriate first step in analysis?

📌 A: Use principal component analysis to reduce dimensionality

📌 B: Estimate a standard OLS regression using raw data

📌 C: Apply logarithmic transformation to stabilize variance

📌 D: Test for unit roots and perform cointegration analysis

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