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      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.

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