Blair conducts regression analysis to study the determinants of trading volume i

Question

Blair conducts regression analysis to study the determinants of trading volume in the commodities markets. She uses quarterly data from 2006-2016 (44 observations) and wants to know whether her regression errors are serially correlated. Her statistical software package displays the following information: R-squared 0.60 Durbin-Watson statistic 3.81 Which of the following would be most accurate for Blair to conclude? | The Durbin-Watson statistic indicates the presence of positive autocorrelation at the 5% significance level. B The Durbin-Watson statistic indicates that there is no evidence of positive autocorrelation at the 5% significance level. | The Durbin-Watson test is inconclusive at the 5% significance level.

Explanation / Answer

here as critical values for durbin watson test at 0.05 level and n=44 is dl=1.47 and du=1.56

as test statistic is not less than dl therefore there is no positive autocorrelation

option B is correct

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