The null hypothesis in the Durbin-Watson test is always that there is A) H₀: ρ 0. B) H₀: ρ

Question

The null hypothesis in the Durbin-Watson test is always that there is A) H₀: ρ > 0. B) H₀: ρ < 0. C) H₀: ρ ≠ 0. D) H₀: ρ = 0.

Quizplus · Accepted Answer

The Durbin-Watson test is used to test for autocorrelation in the residuals of a regression model. The null hypothesis is that there is no autocorrelation (or, equivalently, that the correlation between residuals at different lag distances is 0), which is equivalent to saying that the population correlation coefficient between residuals is 0 (i.e., ρ=0). Therefore, the correct null hypothesis is H₀: ρ = 0.

The Null Hypothesis in the Durbin-Watson Test Is Always That