The Durbin-Watson statistic for a regression model of weekly commodity prices for heating oil (cents) against time was found to be 0.244822.This value indicates that the ________________________ .
A)residuals are positively autocorrelated
B)residuals are negatively autocorrelated
C)residuals are not autocorrelated
D)test is inconclusive
E)none of the above; the Durbin Watson cannot be used for this model

Question

Quizplus · Accepted Answer

The Durbin-Watson statistic tests for autocorrelation in the residuals from a statistical regression analysis. The value ranges from 0 to 4, where a value around 2 suggests no autocorrelation, values approaching 0 indicate positive autocorrelation, and values toward 4 suggest negative autocorrelation. A value of 0.244822 is much closer to 0, indicating positive autocorrelation among the residuals.

The Durbin-Watson Statistic for a Regression Model of Weekly Commodity