The Second Stage of the Durbin-Watson Test for the Presence $d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }$

question 42

Multiple Choice

The second stage of the Durbin-Watson test for the presence of autocorrelation is to

• A)regress the current period residuals on the residuals lagged one period.
• B)regress the residuals lagged one period on the current period residuals.
• C)calculate the test statistic \(d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }\)
• D)calculate the test statistic \(d = \sum _ { t = 2 } ^ { T } \left( e _ { t } - e _ { t - 1 } \right) ^ { 2 } / \sum _ { t = 1 } ^ { T } 2 _ { t } ^ { 2 } .\)

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