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    Question

    In a multiple regression model, the Durbin-Watson test statistic is 1.3, while the critical lower and upper values are 1.5 and 1.7 respectively. This implies that

    A There is a positive autocorrelation Correct Answer Incorrect Answer
    B There is no positive autocorrelation Correct Answer Incorrect Answer
    C The test is inconclusive about autocorrelation Correct Answer Incorrect Answer
    D There is heteroscedasticity but no autocorrelation. Correct Answer Incorrect Answer

    Solution

    Because 1.3 < dL = 1.5, there is positive autocorrelation.

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