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Linear Regression – Assumption – 5 (How To Detect & Avoid Autocorrelation In Regression ?)
How To Detect & Avoid Autocorrelation In Regression ? Table Of Contents: Methods To Detect Autocorrelation In Error Term? Methods To Avoid The Autocorrelation In Error Term. (1) Methods To Detect Autocorrelation In Error Term? Residual Plot (vs. time or observation order) Durbin-Watson Test Autocorrelation Function (ACF) Plot Ljung-Box Test (for multiple lags) (1.1) Residual Plot To Detect Autocorrelation In Error Term? import numpy as np import pandas as pd import matplotlib.pyplot as plt import statsmodels.api as sm # Simulate ordered data (e.g., time series) np.random.seed(42) n = 100 advertising = np.random.normal(1000, 200, n) # Introduce autocorrelation in error terms
