APPLICATION OF SUPERVISED LEARNING
LINEAR REGRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following shows the BEST result of independence of residual?
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2.09
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2.89
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1.89
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2.01
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Explanation:
Detailed explanation-1: -Autocorrelation occurs when the residuals are not independent of each other. That is, when the value of e[i+1] is not independent from e[i]. While a residual plot, or lag-1 plot allows you to visually check for autocorrelation, you can formally test the hypothesis using the Durbin-Watson test.
Detailed explanation-2: -Note that residuals are not actually independent. It’s the error term that’s assumed to be independent. The residuals estimate the error term but they’re definitely dependent.
There is 1 question to complete.