Suppose that you plot the residuals from a regression of Number of Wins on Payroll for the Dallas Cowboys over the last 20 years and you get the following
You would conclude that
A)definitely autocorrelated.
B)likely not autocorrelated.
C)possibly autocorrelated and you would perform a formal test for heteroskedasticity.
D)possibly autocorrelated and you would always perform a correction for autocorrelation.

Question

Suppose that you plot the residuals from a regression of Number of Wins on Payroll for the Dallas Cowboys over the last 20 years and you get the following 
You would conclude that
A)definitely autocorrelated. 
B)likely not autocorrelated. 
C)possibly autocorrelated and you would perform a formal test for heteroskedasticity. 
D)possibly autocorrelated and you would always perform a correction for autocorrelation.

Quizplus · Accepted Answer

There is no visible pattern or clustering in the residual plot, suggesting that there is no autocorrelation. Thus, it is likely not autocorrelated.

Suppose That You Plot the Residuals from a Regression of Number