Question

In testing the assumption that the successive error terms are uncorrelated, we check the Durbin-Watson test...

In testing the assumption that the successive error terms are uncorrelated, we check the Durbin-Watson test statistic. Which one of the following statements is correct?

a. If successive error terms are uncorrelated, the test statistic will be close to 2

b. If successive error terms are negatively correlated, the test statistic will be close to -1

c. If successive error terms are positively correlated, the test statistic will be close to 4

d. If successive error terms are uncorrelated, the test statistic will be close to zero

e. none of the other answers are correct

Homework Answers

Answer #1

the correct answer is option (a)  If successive error terms are uncorrelated, the test statistic will be close to 2

Explanation: We know that the Durbin-Watson test statistic can be used to measure the presence of multicollinearity or whether successive error terms are uncorrelated. It is defined as

D-W= . and we make a decision on the basis of the following criteria as below:

  • If 1.5 DW 2.5 then there is no autocorrelation.
  • If 0< DW< 1.5 then there is positive autocorrelation.
  • If 2.5< DW< 4 then there is a negative autocorrelation.

Thus, from the above statement is clear that if successive error terms are uncorrelated i.e no multicollinearity then the value of DW i.e. test statistic will be close to 2.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) Which is NOT a fundamental assumption of OLS (Ordinary Least Squares)? a)       The...
1) Which is NOT a fundamental assumption of OLS (Ordinary Least Squares)? a)       The regression model is nonlinear in the coefficients and error term.   b)       Observations of the error term are uncorrelated with each other.    c)    No independent variable is a perfect linear function of any other explanatory variables.    d)   The error term has homoscedasticity. e)   All independent variables will be uncorrelated with the error term. ----------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------- 2) You test a model that...
1. Which of the following statements are true of One-way ANOVA test? a. It is a...
1. Which of the following statements are true of One-way ANOVA test? a. It is a robust test (with sufficiently large samples and relatively equal groups) even when the sample data are statistically significantly different from normal distribution. b. All of the other statements are correct. c. It involves a dependent variable measured on a continuous scale. d. It involves an independent variable measured on a categorical scale with 2+ groups/categories. e.It compares the mean/average scores of the 2+ groups...
A high-risk group of 814 male volunteers was included in a major clinical trial for testing...
A high-risk group of 814 male volunteers was included in a major clinical trial for testing a new vaccine for type B hepatitis. The vaccine was given to 367 persons randomly selected from the group, and the others were injected with a neutral substance (placebo). 16 of the vaccinated people and 37 of the nonvaccinated ones later got the disease. We wish to test the hypothesis that the probability of getting type B hepatitis is different (higher or lower) for...
T F 1. A p-value of .008 in hypothesis testing means there is only a .8%...
T F 1. A p-value of .008 in hypothesis testing means there is only a .8% chance we could get such sample statistics from the population if the null hypothesis is as stated. Such an event is considered unlikely and we would reject the null hypothesis. T F 2. As a general rule in hypothesis testing, it is always safer to set up your alternate hypothesis with a greater-than or less-than orientation. _____3. If the level of significance is .02...
1) When we fit a model to data, which is typically larger? a) Test Error b)...
1) When we fit a model to data, which is typically larger? a) Test Error b) Training Error 2) What are reasons why test error could be LESS than training error? (Pick all that applies) a) By chance, the test set has easier cases than the training set. b) The model is highly complex, so training error systematically overestimates test error c) The model is not very complex, so training error systematically overestimates test error 3) Suppose we want to...
(a) standard error        (b) F-ratio                   (c) assumption      (d) degrees of freedom (e) null...
(a) standard error        (b) F-ratio                   (c) assumption      (d) degrees of freedom (e) null hypothesis      (f) control group         (g) experiment      (h) alternative hypothesis       (i) power                     (j) normal distribution (k) randomness     (l) directional test (m) effect size             (n) single-blind           (o) double-blind   (p) sampling distribution (q) Type I error           (r) Type II error          (s) Cohen’s d      (t) central limit theorem 1) The probability to reject the null hypothesis (when it is indeed false) refers to (   type I...
1.The electric field at a distance of 2 mm from a test charge is _____the field...
1.The electric field at a distance of 2 mm from a test charge is _____the field at a distance of 4 mm a. The same as b twice as strong as c four times as strong as d 1/4 as strong as e have as strong ass 2. an electrical field contains two charges ANB. If the charges are doubled to be to a N to be, what would happen to the force on charge a? a The same as...
a) Suppose we have a left-tailed hypothesis test about µ conducted at α = 0.10. If...
a) Suppose we have a left-tailed hypothesis test about µ conducted at α = 0.10. If the sample size is n = 7, what is the correct rejection region? Group of answer choices t > 1.440 z > 1.28 z < -1.28 t < -1.440 b) Danny was recently hired by Mr. Peanut to demonstrate (at α = 0.05) that less than 50% of Mr. Peanuts’ Mixed Nuts are peanuts. Danny randomly sampled 120 mixed nuts and found that 42...
Our friend the waffle-man is back and wants to do more hypothesis tests for proportions, but...
Our friend the waffle-man is back and wants to do more hypothesis tests for proportions, but this time for four waffle recipes. He randomly selected 250 waffle consumers and found that 100 (40%) of the 250 preferred Waffle No. 2. He conducted a hypothesis test with H0:p=0.25H0:p=0.25, Ha:p>0.25Ha:p>0.25. Notice the proportion under the null distribution is p_0 = 0.25. The test statistic for this problem is 5.47. You can verify for yourself that the probability of observing this test statistic...
FOR QUESTIONS 83 TO 90 USE THE FOLLOWING DIRECTION: A researcher theorizes that first-born children of...
FOR QUESTIONS 83 TO 90 USE THE FOLLOWING DIRECTION: A researcher theorizes that first-born children of African-American families are more intelligent than other African-American children. A sample of 50 first-born children of African-American families is found to have an average IQ of 105, while based on other studies we can assume that IQ of other African-American children is 100 on average and has standard deviation of 15. What is the population of interest in this study? A. All African-American families...