If the value of the Durbin-Watson test statistic, d, satisfies the inequalities d 4 - d_L, where d_L and d_U are the critical values of d, we conclude that positive first-order autocorrelation exists.

Question

If the value of the Durbin-Watson test statistic, d, satisfies the inequalities d < d_L or d > 4 - d_L, where d_L and d_U are the critical values of d, we conclude that positive first-order autocorrelation exists.

Quizplus · Accepted Answer

These inequalities define the rejection regions for a hypothesis test of no positive first-order autocorrelation. Therefore, if the calculated Durbin-Watson test statistic falls in these rejection regions, we can reject the null hypothesis of no positive first-order autocorrelation and conclude that positive first-order autocorrelation exists in the data.

If the Value of the Durbin-Watson Test Statistic, D, Satisfies