Question: The Durbin-Watson test is for detecting lag 1 autocorrelation in the residuals. Which values of DW signal positive autocorrelation? If you observe such a DW
The Durbin-Watson test is for detecting lag 1 autocorrelation in the residuals. Which values of DW signal positive autocorrelation? If you observe such a DW value but ignore it, what might go wrong with predictions based on the regression equation? Specifically, if the data are time series data, and your goal is to predict the next six months, what might go wrong with the predictions?
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DW values less than 2 are a sign of positive autocorrelation of the residuals Althoug... View full answer
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