Question

For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value, _____.a. the hypothesis of no serial correlation is accepted b. the hypothesis of no serial correlation is rejected c. the test is inconclusive d. the hypothesis of heteroskedasticity is accepted

Answer 1

Answer:

c. the test is inconclusive

Explanation:

In statistic, Durbin-Watson statistic test is used for testing the auto correlation present in residual and regression analysis. Auto correlation means it works as lagged correlation between variable's current value and variable's past value. For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value the test is inconclusive.