Which of the Following Is a Proper Procedure for Testing $\rho$

Which of the following is a proper procedure for testing for autocorrelation in a panel data model without a lagged dependent variable?

A) Run a model that does not address autocorrelation and test for autocorrelated errors based on the residuals from that model.
B) Run a $\rho$ -transformed model and test for autocorrelated errors based on the residuals from that model.
C) Assess whether there is a different intercept for each unit.
D) Run a probit or logit model and test for autocorrelated errors based on the residuals from that model.

Correct Answer:

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