Assumptions of Linear Regression (Tests to Perform)

The tests to be performed to check the assumptions of linear regression:

1. No Autocorrelation: Durbin Watson Test

2. No Heteroscedacity: Goldfeld Test, Residual VS Fitted Plot

3. No Multi-Collinearity: VIF & Correlation Matrix

4. Normality of Residuals: Jarque Bera Test, Shapiro Test

5. Linearity of Residuals: Rainbow Test

Happy Learning!