In the Durbin-Watson Test, If the Calculated D-Statistic Is Greater

question 70

Multiple Choice

In the Durbin-Watson test, if the calculated d-statistic is greater than the upper value of the d-statistic, then

• A) we do not reject H₀, which says the error terms are not autocorrelated.
• B) we do reject H₀, which says the error terms are not autocorrelated.
• C) the test is inconclusive.
• D) we do reject H₀, which says the error terms are positively or negatively autocorrelated.

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Definitions:

Marginal Utility

The extra pleasure or benefit gained from consuming an additional unit of a product or service.

Total Utility

The total satisfaction received from consuming a certain amount of a good or service.

Diamond/Water Paradox

A paradox highlighting the contradiction where water, essential for survival, is inexpensive, while diamonds, with little intrinsic utility, are expensive.

Marginal Value

The additional value or benefit derived from consuming or producing one more unit of a good or service.