If the Durbin-Watson statistic is 2,we can conclude that:
A) there is no serial correlation.
B) the error terms have constant variances.
C) there is negative serial correlation.
D) there is positive serial correlation.
E) there is multicollinearity.

Question

Quizplus · Accepted Answer

A Durbin-Watson statistic of 2 is indicative of no serial correlation in the error terms. A value of 2 means there is no first-order autocorrelation. Therefore, option A is the correct answer. The other answer options are incorrect.

If the Durbin-Watson Statistic Is 2,we Can Conclude That