Answer-first summary for fast verification
Answer: A Durbin–Watson statistic close to 2.0 indicates that the errors in a time-series model are serially uncorrelated.
**Explanation:** The Durbin-Watson statistic is used to detect autocorrelation in the residuals from a regression analysis: - **Durbin-Watson statistic close to 2.0**: Indicates no autocorrelation in the residuals (Option A is correct) - **Durbin-Watson statistic significantly less than 2.0**: Indicates positive autocorrelation in the residuals - **Durbin-Watson statistic significantly greater than 2.0**: Indicates negative autocorrelation in the residuals Let's analyze each option: **Option A**: Correct - A Durbin-Watson statistic close to 2.0 indicates that the errors are serially uncorrelated. **Option B**: Incorrect - A statistically significantly low value indicates positive serial correlation, not negative. **Option C**: Incorrect - A statistically significantly high value indicates negative serial correlation, not positive. Therefore, Option A is the most accurate statement about the Durbin-Watson statistic and linear trend models.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
A
A Durbin–Watson statistic close to 2.0 indicates that the errors in a time-series model are serially uncorrelated.
B
A statistically significantly low value of the Durbin–Watson statistic indicates that the errors in a time-series model are negatively serially correlated.
C
A statistically significantly high value of the Durbin–Watson statistic indicates that the errors in a time-series model are positively serially correlated.
No comments yet.