You are using Simple Linear Regression for a time-series dataset, and the residuals show a pattern. What does this imply, and what might be the remedy?

  • Autocorrelation Present, Use Time-Series Model
  • Model is Perfect
  • Multicollinearity, Remove Variables
  • Normal Distribution, No Remedy Needed
If residuals show a pattern in a time-series dataset, autocorrelation might be present, violating the independence assumption. A time-series model like ARIMA may be a more suitable approach.
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