Question

If the Durbin-Watson statistic is greater than (4 − d_L), 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 is positive or negative.

D. the test result is inconclusive.

Answer 1

1) If d ≤ DL , Reject H₀, there is positive Autocorrelation

it means If the Durbin-Watson statistic d is less than or equal to DL then we conclude that there is Positive Autocorrelation.

2) If DL ≤ d ≤ DU  , then result is Inconclusive

it means if the Durbin-Watson statistic d is between DL and DU then result is Inconclusive

3)If d ≥ DU , then Do not reject H₀, No evidence of Autocorrelation

it means If the Durbin-Watson statistic d is less than or equal to DU then we conclude that there is no Autocorrelation.

4)If d ≤ (4-DU) , then Do not reject H₀, No evidence of Autocorrelation.

it means If the Durbin-Watson statistic d is less than or equal to ( 4- DU) then we conclude that there is no Autocorrelation.

5)If ( 4 - DU ) ≤ d ≤ ( 4 - DL ) , then result is Inconclusive

it means if the Durbin-Watson statistic d is between ( 4 - DU ) and ( 4 - DL ) then result is Inconclusive.

6) If d ≥ (4-DL) , then Reject H₀, then negative Autocorrelation

it means If the Durbin-Watson statistic d is greater than or equal to ( 4 - DL) then we conclude that there is negative Autocorrelation.

We are given that Durbin-Watson statistic d is greater than (4 − d_L), then option B is correct.

B. there is significant negative autocorrelation.