Question

When the value of d=4, in case of Durbin-Watson Test,

Q: Answer-When the value of d=4, in case of Durbin-Watson Test, what should be done with the null hypothesis?

Null hypothesis in DW test is that there is no Autocorrelation. But when d4, there is perfect negative correlation. So we will reject the Null hypothesis.

what should be done with the null hypothesis?

A Reject Null Hypothesis as there is positive autocorrelation

B Accept Null Hypothesis as there is negative autocorrelation

C Accept Null Hypothesis as there is no autocorrelation

D Reject Null Hypothesis as there is negative autocorrelation

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When the value of d=4, in case of Durbin-Watson Test,

Solution