Economics · Econometrics
In a linear regression model, the Durbin-Watson test cannot be used if:
- 1the model contains lagged values of the explanatory variables
- 2the model contains more than one explanatory variable
- 3the model contains a stochastic disturbance term
- 4the model contains the lagged value of the dependent variable as an explanatory variable✓
Correct answer
the model contains the lagged value of the dependent variable as an explanatory variable
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