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    Question

    When the value of d=2, in case of Durbin-Watson Test,

    what should be done with the null hypothesis?
    A Reject Null Hypothesis as there is positive autocorrelation Correct Answer Incorrect Answer
    B Accept Null Hypothesis as there is negative autocorrelation Correct Answer Incorrect Answer
    C Accept Null Hypothesis as there is no autocorrelation Correct Answer Incorrect Answer
    D Reject Null Hypothesis as there is negative autocorrelation Correct Answer Incorrect Answer

    Solution

    When the value of d =2, there is no autocorrelation. When d=4, there is perfect negative autocorrelation and when it is 0, there is perfect positive autocorrelation

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