Question

The following show the results of regression:

Housing Sold = b0 + b1 permit +b2 price + b3 employment

Dependent Variable: SOLD ,             
Method: Least Squares              
Date: 03/15/20   Time: 14:59              
            
Included observations: 108              
              
Variable      Coefficient Std. Error t-Statistic    Prob.
              
C -61520.76   167763.0            -0.366712      0.7146
PERMIT    15.98282                .280962   12.47721     0.0000
PRICE      -0.360566   0.345253      -1.044354 0.2987
EMP 33.57386    15.67645   2.141674 0.0346
              
R-squared   0.634646         Mean dependent var       481456.3
Adjusted R-squared   0.624106        S.D. dependent var       62292.29
S.E. of regression   38191.50          Akaike info criterion      23.97495
Sum squared resid   1.52E+11      Schwarz criterion          24.07429
Log likelihood   -1290.647       Hannan-Quinn criter.       24.01523
F-statistic   60.21835                        Durbin-Watson stat      0.553692
Prob(F-statistic)   0.000000          

Choose the correct answer

Multiple Choice

• There is positive serial correlation in this regression.

• There is no serial correlation in this regression.

• There is negative serial correlation in this regression.

• There is multicollinearity in this regression.

Answer 1

(since for n=108 and p=number of independent variables , critical lower limit =1.630

and Durbin-Watson stat < 1.630

There is positive serial correlation in this regression.