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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