Economics · Econometrics
Autocorrelation in a regression model refers to a situation where:
- 1The residuals follow a non-normal distribution
- 2The variance of the error terms is non-constant across observations
- 3The independent variables are highly correlated with each other
- 4The error terms (residuals) are correlated with one another✓
Correct answer
The error terms (residuals) are correlated with one another
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