If the Durbin-Watson statistic has a value close to 0 or 4,which assumption is violated?
A)normality of the errors
B)independence of errors
C)homoscedasticity
D)variance of errors

Question

Quizplus · Accepted Answer

A Durbin-Watson statistic value close to 0 indicates positive autocorrelation in the errors, while a value close to 4 indicates negative autocorrelation. Autocorrelation violates the assumption of independence of errors, which is option B. Normality of the errors, homoscedasticity, and variance of errors are other assumptions that are not related to the Durbin-Watson statistic.

If the Durbin-Watson Statistic Has a Value Close to 0