Suppose that for a time-series model,you compute a Durbin-Watson statistic D = 0.625.Assume that n = 30 and α = 0.05.Then your decision is ______.
A) fail to reject the null hypothesis D = 0
B) reject the null hypothesis D = 0
C) fail to reject the null hypothesis ρ = 0
D) reject the null hypothesis ρ = 0
E) fail to reject the null hypothesis ρ 0

Question

Suppose that for a time-series model,you compute a Durbin-Watson statistic D = 0.625.Assume that n = 30 and α = 0.05.Then your decision is ______.
A) fail to reject the null hypothesis D = 0
B) reject the null hypothesis D = 0
C) fail to reject the null hypothesis ρ = 0
D) reject the null hypothesis ρ = 0
E) fail to reject the null hypothesis ρ > 0

Quizplus · Accepted Answer

The Durbin-Watson statistic tests for autocorrelation in the residuals of a regression analysis. A value of D = 0.625 indicates positive autocorrelation. Given n = 30 and α = 0.05, this value is significantly lower than 2, leading to the rejection of the null hypothesis ρ = 0, which assumes no autocorrelation.

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