We plot time series residuals against observed values of Y to determine whether a cyclical component is apparent.

Name: We plot time series residuals against observed values of Y to determine whether a cyclical component is apparent.
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Question

Quizplus · Accepted Answer

Residuals are typically plotted against fitted values or time to check for patterns, not against observed values, to identify issues like non-linearity, heteroscedasticity, or autocorrelation.

We Plot Time Series Residuals Against Observed Values of Y