Suppose that for a time-series model,you compute a Durbin-Watson statistic of 0.625.Assume that n = 30 and α = 0.05.Then d_L = ______. A) 1.32 B) 1.35 C) 1.38 D) 1.41 E) 1.43

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Quizplus · Accepted Answer

Looking at the Durbin-Watson table, for n=30 and α=0.05, dL=0.871 and dU=1.631. Now, we can use the formula dS = dU - dL, and plug in the numbers: dS = 1.631 - 0.871 dS = 0.76 Finally, we can use the formula d_L = dL + B1(dU - dL) 0.625 = 0.871 + B1(0.76) 0.625 - 0.871 = B1(0.76) -0.246/0.76 = B1 B1 = -0.32 Therefore, d_L is: d_L = dL + B1(dU - dL) d_L = 0.871 - 0.32(0.76) d_L = 1.35

Suppose That for a Time-Series Model,you Compute a Durbin-Watson Statistic