In a multiple regression model, the Durbin-Watson test statistic is , while the critical lower and upper values are and respectively. This implies that
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DSE 2018 Question 19: Classical assumptions and their violations
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In a multiple regression model, the Durbin-Watson test statistic is 1.3, while the critical lower and upper values are 1.5 and 1.7 respectively. This implies that (A) There is positive autocorrelation (B) There is no positive autocorrelation (C) The test is inconclusive about autocorrelation (D) There is heteroscedasticity but no autocorrelation
Classical assumptions and their violations has come up 26 times in 7 exams since 2011.
What this question tests
This question is on Autocorrelation, part of Classical assumptions and their violations in Econometrics.
Errors correlated over time: causes, consequences and the Durbin-Watson test.
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