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      Question

      When the value of d=4, 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

      Null hypothesis in DW test is that there is no Autocorrelation. But when d=4, there is perfect negative correlation. So we will reject the Null hypothesis.

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