For a Given Significance Level, If the Calculated Value of the Durbin

question 17

Multiple Choice

For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value, _____.

• A)the hypothesis of no serial correlation is accepted
• B)the hypothesis of no serial correlation is rejected
• C)the test is inconclusive
• D)the hypothesis of heteroskedasticity is accepted

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Definitions:

Annual Depreciation

The annual expense taken for a fixed asset, representing a fraction of its cost spread over its lifespan.

Useful Life

The estimated duration of time that an asset is expected to be usable for its intended purpose, affecting depreciation calculations.

Salvage Value

The conjectured remaining value of an asset at the close of its functional lifetime.

Discount Rate

This refers to the interest rate employed in DCF calculations to figure out the present value of upcoming cash flows.