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?

Step by Step Solution

3.40 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

DW values less than 2 are a sign of positive autocorrelation of the residuals Althoug... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1209-M-S-D-A(8854).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!