📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    Which of the following is correct regarding the

    Durbin-Watson Test?
    A If DW < Lower critical value: There is statistical evidence that the data is positively autocorrelated Correct Answer Incorrect Answer
    B If DW > Upper critical value: There is no statistical evidence that the data is positively correlated Correct Answer Incorrect Answer
    C If DW is in between the lower and upper critical values: The test is inconclusive. Correct Answer Incorrect Answer
    D All of the these Correct Answer Incorrect Answer

    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.

    Practice Next
    More Research Questions
    ask-question