Ljung--Box Test
Name one statistical test for checking for autocorrelation of residuals and explain it briefly.
Answer
One common test is the Ljung–Box test. It checks whether there is significant autocorrelation in the residuals up to a specified number of lags. The null hypothesis is that the residuals are white noise (no autocorrelation). A small \(p\)-value, hence, indicates that autocorrelation remains in the residuals.