I run a multiple linear regression model with 4 regressors , including two dummy variables. I have a total of526 observations and I wish to test for serial correlationusing 7 past lags.I find that EViews reports a value of the BG test ( Obs* R squared) of 16.52643. You chosen level of significance is 5%

Take the statistical tables , find the table of the distribution of the BG test statistics, identify the critical value andthe critical region and choose the correct alternative below ( your ability to read thestats tables will be examined in your final exam ).

Select one:

a.the critical value is 18.48andsowe cannot reject the nullat 5% level of significance , however we can reject it at 10% level of significance

b.the critical value is 9.81andsowe cannot reject the null at 5% level of significance implying we have no evidences of serial correlation

c.the critical value is 20.28andsowe cannotreject the null

d.the critical value is 14.07andsowe reject the nullat 5% significance level thus there is serial correlation

e.the critical value is 12.34andsowe reject the null at 5% level of significance : we have evidence of serial correlation