The Value of the Durbin Watson Test Statistic in a Regression

question 22

Multiple Choice

The value of the Durbin Watson test statistic in a regression with 4 regressors (including the constant term) estimated on 100 observations is 3.6. What might we suggest from this?

• A) The residuals are positively autocorrelated
• B) The residuals are negatively autocorrelated
• C) There is no autocorrelation in the residuals
• D) The test statistic has fallen in the intermediate region

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Definitions:

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables, used to predict outcomes and trends.

Independent Variables

Variables in an experiment or statistical model that are manipulated or categorized to observe their effect on the dependent variable.

Dependent Variable

A variable in an experiment or model whose value is affected or determined by other variables, typically the outcome or response variable.

Y-intercept

The point where a line or curve intersects the y-axis of a graph.