Solved – Autocorrelation or Serial Correlation

autocorrelationcorrelationreferencesself-studytime series

Autocorrelation is also known as serial correlation .

  • Why is the terminology serial used ? Is there anything unserial or disordered correlation ?

  • Also i see the word positive serial correlation frequently . But never had seen negative serial correlation . Is there anything "negative serial correlation" ? If so , can you please give me a real life example ?

Best Answer

alike Serial Dependance, if the value at some time t in the series is correlated on the some pair of value at another time s,say,serial correlation.as it is serially correlated. for this there is a term "no serial correlation"

Negative serial correlation implies that a positive error for one observation increases the chance of a negative error for another observation and a negative error for one observation increases the chances of a positive error for another.

you can test for type of auto-correlation by Durbin–Watson statistic

Real life examples

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