Learning Guide: Testing for Autocorrelation in Regression Models Using the Breusch-Godfrey Test with R
The Critical Assumption of Independent Residuals in OLS Modeling A cornerstone of classical regression analysis, particularly when utilizing Ordinary Least Squares (OLS), is the assumption that the error terms (or residuals) derived from the model are independently and identically distributed. This independence is not merely a theoretical nicety; it requires that the error associated with […]