If the Durbin-Watson statistic is near 4,we can conclude that there is:
A) positive serial correlation.
B) negative serial correlation.
C) no serial correlation.
D) a multicollinearity problem.
E) not enough data to estimate the regression.

Question

Quizplus · Accepted Answer

The Durbin-Watson statistic tests for serial correlation in the residuals from a linear regression analysis. A value near 2 suggests no serial correlation, values approaching 0 indicate positive serial correlation, and values toward 4 suggest negative serial correlation. Therefore, a value near 4 indicates negative serial correlation.

If the Durbin-Watson Statistic Is near 4,we Can Conclude That