The Second Stage of the Durbin-Watson Test for the Presence $d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }$

Multiple Choice

The second stage of the Durbin-Watson test for the presence of autocorrelation is to

A) regress the current period residuals on the residuals lagged one period.
B) regress the residuals lagged one period on the current period residuals.
C) calculate the test statistic $d = \sum _ { t = 2 } ^ { T } e _ { t - 1 } ^ { 2 } / \sum _ { t = 1 } ^ { T } e _ { t } ^ { 2 }$
D) calculate the test statistic $d = \sum _ { t = 2 } ^ { T } \left( e _ { t } - e _ { t - 1 } \right) ^ { 2 } / \sum _ { t = 1 } ^ { T } 2 _ { t } ^ { 2 } .$