If the Durbin-Watson statistic has a value close to 4,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 measures autocorrelation or dependence of errors. The statistic has a value between 0 and 4, with a value of 2 indicating no autocorrelation. If the statistic has a value close to 4, it suggests negative autocorrelation, while a value close to 0 suggests positive autocorrelation. Therefore, a value close to 4 violates the assumption of independence of errors. Homoscedasticity and normality are not related to the Durbin-Watson statistic.

If the Durbin-Watson Statistic Has a Value Close to 4,which