Suppose that for a time-series model with one predictor, you compute a Durbin-Watson statistic D = 0.625.Assume that n = 30 and α = 0.05.Then your decision is ______.
A)fail to reject the null hypothesis D = 0
B)reject the null hypothesis D = 0
C)fail to reject the null hypothesis ρ = 0
D)reject the null hypothesis ρ = 0
E)fail to reject the null hypothesis ρ 0

Question

Suppose that for a time-series model with one predictor, you compute a Durbin-Watson statistic D = 0.625.Assume that n = 30 and α = 0.05.Then your decision is ______.
A)fail to reject the null hypothesis D = 0
B)reject the null hypothesis D = 0
C)fail to reject the null hypothesis ρ = 0
D)reject the null hypothesis ρ = 0
E)fail to reject the null hypothesis ρ > 0

Quizplus · Accepted Answer

The Durbin-Watson statistic tests for autocorrelation in the residuals from a statistical regression analysis. A value of D close to 2 suggests no autocorrelation, a value less than 2 suggests positive autocorrelation, and a value greater than 2 suggests negative autocorrelation. With D = 0.625, which is significantly less than 2, there is evidence of positive autocorrelation, leading to the rejection of the null hypothesis that there is no autocorrelation (ρ = 0).

Suppose That for a Time-Series Model with One Predictor, You