If the Durbin-Watson statistic has a value close to 0, which assumption is violated?
A. Normality of the errors.
B. Independence of errors.
C. Homoscedasticity.
D. None of these choices.
Analysis:
A. Incorrect. The independence of errors assumption is violated.
B. Correct. The independence of errors assumption is violated.
C. Incorrect. The independence of errors assumption is violated.
D. Incorrect. The independence of errors assumption is violated.
ANSWER : B
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