The Durbin-Watson Statistic Indicates

question 29

Multiple Choice

The Durbin-Watson statistic indicates

• A) that there is evidence of positive autocorrelation.
• B) that there is evidence of negative autocorrelation.
• C) that there is no evidence of positive autocorrelation.
• D) that there is no evidence of negative autocorrelation.
• E) Since the Durbin-Watson statistic falls between the critical values, the test is inconclusive.

---

Definitions:

General Journal

A basic accounting record where all types of transactions are initially recorded before being posted to specific accounts in the general ledger.

General Ledger

A complete record of all financial transactions over the life of a company.

Debit Balances

Accounts on the left-hand side of a double-entry bookkeeping system that typically signify assets or expenses.

Permanent Account

An account that carries its ending balance over from one accounting period to the next, such as assets, liabilities, and equity accounts.