Econometrics: Classical Assumption 4 – All observations of the error term are entirely uncorrelated with each other.

  In econometrics, a fantastic way of observing the relationship between the respective error observations within a given data set  is through a visual relationship. It makes any relationship immediately obvious when you draw a representation of the residual level present within the data set. What we see here is what can be described as …

Econometrics: Classical Assumption 4 – All observations of the error term are entirely uncorrelated with each other. Read More »