When the assumption of ________ residuals (error terms) is violated, the Durbin-Watson statistic is used to test to determine if there is significant ________ among the residuals.
A) normality; probability
B) independent; probability
C) independent; autocorrelation
D) normality; autocorrelation

Question

Quizplus · Accepted Answer

Time ordered error terms can be autocorrelated, which is when error terms occurring over time have positive (negative) autocorrelation. Positive (negative) error terms tend to be followed over time by positive (negative) error terms.

When the Assumption of ________ Residuals (Error Terms) Is Violated