In regression analysis, the term independence of residuals means
A)the residual term for any one observation is not related to the residual term of any other observation.
B)the data exhibit serial correlation.
C)the data exhibit autocorrelation.
D)there is a systematic pattern of positive residuals.
E)there is a systematic pattern of either only positive or only negative residuals.

Question

Quizplus · Accepted Answer

Independence of residuals means that the residuals (the differences between the observed values and the predicted values) for any one observation are not related to the residuals for any other observation, thus avoiding the problem of autocorrelation or serial correlation. The presence of systematic patterns of residuals (choices D and E) indicates that the model is biased or misspecified.

In Regression Analysis, the Term Independence of Residuals Means