Economics · Econometric Problems
By autocorrelation we mean that:
- 1The variance of the residuals of a regression model is not cons tant for all observations.
- 2The square of the residuals of a regression model are not equally spread.
- 3The residuals of a regression model are related with one or more of the regressors.
- 4The residuals of a regression model are not independent.✓
Correct answer
The residuals of a regression model are not independent.
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