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MMLU / Suppose that the Durbin Watson test is applied to a regression containing two…

Problem

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question

Suppose that the Durbin Watson test is applied to a regression containing two explanatory variables plus a constant with 50 data points. The test statistic takes a value of 1.53. What is the appropriate conclusion?

choices

  1. Residuals appear to be positively autocorrelated
  2. Residuals appear to be negatively autocorrelated
  3. Residuals appear not to be autocorrelated
  4. The test result is inconclusive

subject

econometrics

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