Sumera Nawaz ECONOMICS   -   Econometrics

Which test is commonly used to detect autocorrelation in the residuals of a regression model?

The Durbin-Watson test is commonly used to detect autocorrelation in the residuals of a regression model. It tests the null hypothesis that there is no first-order autocorrelation in the residuals, with values near 2 indicating no autocorrelation and values approaching 0 or 4 indicating positive or negative autocorrelation, respectively.
When is the use of a fixed-effects model preferable to a random-effects model in panel data analysis? What is the primary purpose of using Instrumental Variables (IV) in econometrics? Which test is commonly used to detect autocorrelation in the residuals of a regression model? How to address heteroskedasticity in a regression model? Why is multicollinearity a problem in multiple regression analysis?