From the regression results we calculate a Durbin-Watson test statistic of 2.68. What can we conclude about the possibility of autocorrelation in this model at ?=0.05?
What will be an ideal response?
The decision rule for this test is:
Reject H0 if no autocorrelation in the errors if d < dL(d > 4 - dL).
Inconclusive if dL < d < dU (or 4 - dU < d < dL)
For ? = 0.05, n = 36, k = 4, dL = 1.24 and dU = 1.73
Since 4 - dU = 2.27 < d = 2.68 < 4 - dL= 2.76, the test for negative autocorrelation is inconclusive.
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