a part 1) An econometrician suspects that the residuals of her model might be autocorrelated. Explain the steps involved in testing this theory using the Durbin–Watson (DW) test.
a part 2) The econometrician follows your guidance in part (a) and calculates a value for the Durbin–Watson statistic of 0.95. The regression has sixty quarterly observations and three explanatory variables (plus a constant term). Perform the test. What is your conclusion?
