One way to detect autocorrelation is to graph the residuals from a standard OLS model over time.

Question

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Autocorrelation can be detected by graphing the residuals over time and looking for patterns or trends in their behavior. If the residuals show a significant pattern over time, it suggests that there is some correlation between them and the independent variable, indicating that the OLS model may not be the best fit for the data.

One Way to Detect Autocorrelation Is to Graph the Residuals