From the regression results we calculate a Durbin-Watson test statistic of 1.53. 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 dL = 1.24 < d = 1.53 < dU = 1.73, the test for positive autocorrelation is inconclusive.
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