Consider a series that follows an MA(1) with zero mean and a moving average coefficient of 0.4. What is the value of the autocorrelation function at lag 1?

A. Close to zero

B. Close to two

C. Close to four

D. Close to one

A. It will be biased

B. It will be inconsistent

C. It will be inefficient

D. All of a, b and c will be true

A. 0 and 0

B. 0 and 3

C. 3 and 0

D. Will vary from one normal distribution to another

A. A white noise process

B. A covariance stationary process

C. An autocorrelated process

D. A moving average process

A. A slowly decaying acf, and a pacf with 3 significant spikes

B. A slowly decaying pacf and an acf with 3 significant spikes

C. A slowly decaying acf and pacf

D. An acf and a pacf with 3 significant spikes

A. Biased but consistent coefficient estimates

B. Biased and inconsistent coefficient estimates

C. Unbiased but inconsistent coefficient estimates

D. Unbiased and consistent but inefficient coefficient estimates