One of the ways to overcome the autocorrelation problem in a regression forecasting model is to transform the variables by taking the first-order differences.

Name: One of the ways to overcome the autocorrelation problem in a regression forecasting model is to transform the variables by taking the first-order differences.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

Taking first-order differences can help remove autocorrelation in the data and improve the accuracy of the regression model.

One of the Ways to Overcome the Autocorrelation Problem in a Regression