Question: Exercises 13.3 Model Assumptions and Common Violations 31. A simple linear regression, y = 0 + 1x + , is estimated with time series data.
Exercises 13.3 Model Assumptions and Common Violations 31. A simple linear regression, y = 0 + 1x + , is estimated with time series data. The resulting residuals e and the time variable t are shown in the accompanying table. a. Graph the residuals against time and look for any discernible pattern. b. Which assumption is being violated? Discuss its consequences and suggest a possible remedy
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