The Durbin-Watson statistic,d,is defined as $d = \sum _ { i = 2 } ^ { n } \left( e _ { i } - e _ { i - 1 } \right) ^ { 2 } / \sum _ { i = 1 } ^ { n } e _ { i }$ ,where e_i is the residual at time period i.

Question

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The correct formula for the Durbin-Watson statistic is $d = \sum _ { i = 2 } ^ { n } \left( e _ { i } - e _ { i - 1 } \right) ^ { 2 } / \sum _ { i = 1 } ^ { n } e _ { i }^2$, where the denominator should be the sum of squared residuals, not just the sum of residuals.

The Durbin-Watson Statistic,d,is Defined As d=∑i=2n(ei−ei−1)2/∑i=1neid = \sum _ { i = 2 } ^ { n } \left( e _ { i } - e _ { i - 1 } \right) ^ { 2 } / \sum _ { i = 1 } ^ { n } e _ { i }d=∑i=2n​(ei​−ei−1​)2/∑i=1n​ei​

The Durbin-Watson Statistic,d,is Defined As $d = \sum _ { i = 2 } ^ { n } \left( e _ { i } - e _ { i - 1 } \right) ^ { 2 } / \sum _ { i = 1 } ^ { n } e _ { i }$