If the Durbin-Watson Statistic Has a Value Close to 4,which

question 17

Multiple Choice

If the Durbin-Watson statistic has a value close to 4,which assumption is violated?

• A)Homoscedasticity
• B)Normality of the errors
• C)Independence of errors
• D)None of these choices.

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Definitions:

Gini Coefficient

A commonly used measure of the degree of inequality of income derived from a Lorenz curve. It can range from 0 to a maximum of 1.

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showcasing the degree of inequality.

45-Degree Line

In economics, often used in Keynesian cross diagrams to show points where aggregate output (or income) equals aggregate expenditure, indicating equilibrium.

Gini Coefficient

A measure of the inequality of a distribution, often used to measure income inequality, ranging from 0 (perfect equality) to 1 (perfect inequality).