Which of the Following Conditions Must Be Fulfilled for the Durbin

question 11

Multiple Choice

Which of the following conditions must be fulfilled for the Durbin Watson test to be valid?
(I) The regression includes a constant term
(ii) The regressors are non-stochastic
(iii) There are no lags of the dependent variable in the regression
(iv) There are no lags of the independent variables in the regression

• A) (i), (ii) and (iii) only
• B) (i) and (ii) only
• C) (i), (ii), (iii) and (iv)
• D) (i), (ii), and (iv) only

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Definitions:

Timing

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Preconditions

Necessary conditions that must exist or be met before a particular action can occur.

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Motivation

The reason or reasons one has for acting or behaving in a particular way; the driving force behind actions.