Positive autocorrelation is present in a time series when we observe a pattern of positive or negative residuals in succession.

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Positive autocorrelation occurs when residuals (or errors) in a time series model are positively correlated, meaning that a positive error in one period is likely followed by a positive error in the next period, and a negative error is likely followed by another negative error, indicating a pattern or trend in the residuals.

Positive Autocorrelation Is Present in a Time Series When We