📈 CFA Exam Prep

Durbin-Watson statistic tests for:

A Normality
B Autocorrelation (serial correlation) in regression residuals
C Multicollinearity
D Heteroskedasticity

✓ Correct Answer: Option B

DW statistic near 2 = no autocorrelation. Near 0 = positive autocorrelation. Near 4 = negative autocorrelation.

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