Autocorrelation and time-series Analysis
Auto correlation refers to the degree of correlation between the values of the same variables across different observations in the data. Discuss atleast one(1) problem with auto correlation and provide one (1) time series example of your own that illustrates auto correlation.
Requirements:
Must be original No Plagiarism
APA format proper citations and references.
Answer preview
Autocorrelation is a critical time-series tool in determining the future patterns of various business aspects such as prices, demand, and supplies since it measures the relationship of the same variable about different time points. However, there are challenges when using autocorrelation to perform statistical analyses. Autocorrelation can result in issues in convectional analyses, which assumes that observations are independent. Such conventional analyses include the ordinary least square…
(600 words)