When Testing for the Presence of Positive Autocorrelation and the Durbin-

question 118

Multiple Choice

When testing for the presence of positive autocorrelation and the Durbin- Watson statistic is greater than the upper critical value, which one of the following statements is true?

• A)We fail to reject the null hypothesis and conclude that no positive autocorrelation is present in the time series.
• B)We reject the null hypothesis and conclude that a positive autocorrelation is present in the time series.
• C)We fail to reject the null hypothesis and conclude that a positive autocorrelation is present in the time series.
• D)The hypothesis test is inconclusive.

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