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If the Durbin-Watson statistic has a value close to 0, which assumption is violated? a) Normality...

If the Durbin-Watson statistic has a value close to 0, which assumption is violated?

  1. a) Normality of the errors.

  2. b) Independence of errors.

  3. c) Homoscedasticity.

  4. d) None of the above.

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Answer #1

Ans:

Option b is correct.

Independence of errors.

if the Durbin-Watson statistic takes a value near 0 then the regression model probably violates the regression assumption of independence of errors.

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