Autocorrelation & Multicollinearity
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Define autocorrelation in the following terms:
a. In which type of regression is it likely to occur?
b. What is the negative impact of autocorrelation in a regression?
c. Which method is used to determine if it exists?
d. If found in a regression, how is autocorrelation eliminated?
Define multicollinearity in the following terms:
a. In which type of regression is likely to occur?
b. What is the negative impact of multicollinearity in a regression?
c. Which method is used to determine if it exists?
d. If multicollinearity is found in a regression, how is it eliminated?
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Solution Summary
The solution provides information on Autocorrelation and Multicollinearity. The solution also provides its negative impact in regression and the method of elimination if found in regression.
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