The second stage of the Durbin-Watson test for the presence of autocorrelation is to
A)regress the current period residuals on the residuals lagged one period.
B)regress the residuals lagged one period on the current period residuals.
C)calculate the test statistic $d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }$
D)calculate the test statistic $d = \sum _ { t = 2 } ^ { T } \left( e _ { t } - e _ { t - 1 } \right) ^ { 2 } / \sum _ { t = 1 } ^ { T } 2 _ { t } ^ { 2 } .$

Question

Quizplus · Accepted Answer

The Answer is D

The Second Stage of the Durbin-Watson Test for the Presence d=∑t=2Tet−12/∑t=1Tet2d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }d=∑t=2T​et−12​/∑t=1T​et2​

The Second Stage of the Durbin-Watson Test for the Presence $d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }$