Question

If the Durbin-Watson statistic is greater than (4 − dL), then we conclude that

A.there is significant positive autocorrelation.
B.there is significant negative autocorrelation.
C.there is significant autocorrelation, but we cannot identify whether it D.is positive or negative.
the test result is inconclusive.

Answer 1

Option(b) is the correct answer to the given question

Explanation:

1) If
`d\leq dl` then , there must be a positive Autocorrelation

According to it if the ratio d of durbin-watson is equal to or less than dL then it is called as Positive Autocorrelation.

2 ) if , then it is Inconclusive

According to it If the coefficient d of the Durbin-Watson is between dL & du then it is called as Inconclusive.

3) if
`d\geq du` then there is No proof of the Autocorrelation

According to it if the d of the durbin-watson will be less than or equivalent to du then it is called as No Autocorrelation.

4) If
`d \leq (4-du)` ) then there is No proof of the Autocorrelation

According to it if the d of the durbin-watson will be less than or equivalent to 4- du then it is called as No Autocorrelation.

5) If the
`( 4 - du ) \leq d \leq ( 4 -dl )` , then it is Inconclusive

According to it if the d of the durbin-watson is between the
`(4-du) \ and \ (4-dl)` then it is called as Inconclusive.

6) If the
`d \geq (4-dl)` then it called as negative Autocorrelation

According to it if the d of the durbin-watson is greater then
`4-dl` then it is called as negative autocorrelation.

• From the point 6 we can say that the option(B) is correct
• All the others options are not correct for (4 − dL), so these are incorrect option .