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 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 autocorrelation exists.

Quizplus · Accepted Answer

This statement is true. The Durbin-Watson test is used to test for autocorrelation in the residuals of a regression model. The critical values of the test statistic depend on the sample size and the number of independent variables in the model. If the calculated value of the test statistic falls outside the critical value range, we can conclude that autocorrelation exists in the residuals.

If the Value of the Durbin-Watson Test Statistic,d,satisfies the Inequalities