Linear Regression | What is Auto-Correlation in Linear Regression assumption

Question

Assumption of LR

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TheDataMonk 55 years 1 Answer 1016 views Grand Master 0

Answer ( 1 )

  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).

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