When There Is Positive Autocorrelation, Over Time, Negative Error Terms

question 104

True/False

When there is positive autocorrelation, over time, negative error terms are followed by positive error terms and positive error terms are followed by negative error terms.

---

Definitions:

Denseness

In mathematics, it describes a property of a set in which every point in a given space is a limit point of some sequence in the set.

Residual Plot

A graphical representation showing the residuals (the differences between observed and predicted values) on the vertical axis and the independent variable or predicted values on the horizontal axis, used to assess model fit.

Explanatory Variable

A variable in statistical analysis that is believed to influence or cause changes in another variable, often tested for effect.

Regression Analysis

A set of statistical processes for estimating the relationships between a dependent variable and one or more independent variables.