Linear Regression | What is Auto-Correlation in Linear Regression assumption
Question
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
It will take less than 1 minute to register for lifetime. Bonus Tip - We don't send OTP to your email id Make Sure to use your own email id for free books and giveaways
Answer ( 1 )
Autocorrelation occurs when the residual errors are dependent on each other.
The presence of correlation in error terms reduces the model’s accuracy.
This mostly occurs in time series models where the next value is dependent on
previous value. In other words, the value of y(x+1) is not independent from the value
of y(x).