9.1 Linear Regression 9.1.1 Review of the basics The lm function in R constructs—as its name implies—a linear model from data. Recall that a linear model is of the form Y = β0+β1X1+...+βnXn Y = β 0 + ...

Ordinary regression analysis is based on several statistical assumptions. One key assumption is that the errors are independent of each other. However, with time series data, the ordinary regression ...