Question
Which of the following is correct regarding the
Durbin-Watson Test?Solution
All of the above are correct. To test for negative autocorrelation at significance level α (alpha), the test statistic 4-DW is compared to lower and upper critical values: If 4-DW < Lower critical value: There is statistical evidence that the data is negatively autocorrelated. If 4-DW > Upper critical value: There is no statistical evidence that the data is negatively correlated. If 4-DW is in between the lower and upper critical values: The test is inconclusive.
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