Which of the following would probably NOT be a potential cure for non-normal res

Question

Which of the following would probably NOT be a potential cure for non-normal residuals? Select one: 1. Transforming two explanatory variables into a ratio 2. Removing large positive residuals 3. Using a procedure for estimation and inference which did not assume normality 4. Removing large negative residuals Which one of the following statements must hoid for EVERY CASE concerning the residual sums of squares for th Select one: 1. URSS RRSS 2. URSS RRSS 3. RRSS>URSS The graphs above are time sereis plots of resaidials froir twio seporate regroes onse Which ot these s true? Select one 1. A shows negative autocorreation and B shows postive auutocorretation 2. A shows positive autocorelation and B shows negative autooorre.ahon 3 A shows heteroscasticity and 8 shows homoscedasticity A shows MacBook Ai

Explanation / Answer

All of your solutions seems to be correct.

All below 3 are cure of non-normal residuals.
1. Transforming 2 explanatory variables into a ratio (it may led to have normal residuals)
2. Removing large positive/ negative residuals (to remove a outlier in the data)

So, the correct option is Using a procedure for estimation and inference which did not assume normality

URSS (RSS obtained with the unrestricted model) will always be lower than or equal to RRSS (RSS obtained with the restricted model), because all variable of restricted model are also present in unrestricted model.
So, RRSS = URSS + RSS of remaining variables not present in the restricted model given the RSS of the variables of the restricted model.
So, definitely, RRSS >= URSS

Positive autocorrelation occurs when an error of a given sign tends to be followed by an error of the same sign.
Negative autocorrelation occurs when an error of a given sign tends to be followed by an error of the opposite sign.

So, the correct option is,
A shows negative autocorrelation and B shows positive autocorrelation

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