- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Model Misspecification
- Subject 3. Serial Correlation
CFA Practice Question
The null hypothesis of the Durbin-Watson test is:
II. There is no serial correlation.
III. There is positive serial correlation.
IV. There is negative serial correlation.
I. H0: r = 0
II. There is no serial correlation.
III. There is positive serial correlation.
IV. There is negative serial correlation.
Correct Answer: I and II
I and II are equivalent.
User Contributed Comments 1
| User | Comment |
|---|---|
| Thecatz89 | with r = correlation coefficient between residuals from one period and those from the previous period |