Use the following to answer the question(s) below.
A linear regression model was fit to data representing technology adoption over time. The regression output and residual plot appears below.
-It is known that at 1% significance level the critical values for Durbin-Watson statistic are 0.738 and 1.038. The Durbin-Watson statistic indicates
A) that the residuals are positively autocorrelated
B) that the residuals are negatively autocorrelated
C) that the residuals are not autocorrelated
D) that the test is inconclusive
E) The Durbin-Watson cannot be used for this model.

Question

Use the following to answer the question(s) below.
A linear regression model was fit to data representing technology adoption over time. The regression output and residual plot appears below.  
-It is known that at 1% significance level the critical values for Durbin-Watson statistic are 0.738 and 1.038. The Durbin-Watson statistic indicates
A) that the residuals are positively autocorrelated 
B) that the residuals are negatively autocorrelated 
C) that the residuals are not autocorrelated 
D) that the test is inconclusive 
E) The Durbin-Watson cannot be used for this model.

Quizplus · Accepted Answer

Looking at the Durbin-Watson value of 0.461, which is less than the lower critical value of 0.738, we can conclude that the residuals are positively autocorrelated.

Use the Following to Answer the Question(s) Below