If the Durbin-Watson statistic has a value close to 0,which assumption is violated?
A)Homoscedasticity.
B)Normality of the errors.
C)Independence of errors.
D)None of these choices.

Question

Quizplus · Accepted Answer

The Durbin-Watson statistic tests for autocorrelation or dependence of errors. A value close to 0 indicates positive autocorrelation, which means that errors at one time point are correlated with errors at the next time point. This violates the assumption of independence of errors. Homoscedasticity and normality of the errors are not directly tested by the Durbin-Watson statistic.

If the Durbin-Watson Statistic Has a Value Close to 0,which