Posted by **Yadira M** on Monday, August 17, 2009 at 5:09pm.

A regression model has 2 independent variables and 16 observations, and the calculated Durbin-Watson d statistic is 2.78. What, if any, conclusion will be reached in testing for autocorrelation of the residuals with a:

a. two-tail test at the 0.05 level of significance?

b. Test the negative autocorrelation at the 0.01 level?

- statistics -
**MathMate**, Tuesday, August 18, 2009 at 8:43am
Data:

2 independent variables (k=2)

16 observations

Durbin-Watson statistic = 2.78 (possible negative correlation)

Null Hypothesis: No autocorrelation exists in the residuals.

a. At the 0.05 level of significance for k=2 and 16 observations, DL=0.982, DU=1.539 for positive correlation. Complement of the Durbin-Watson statistic is 4-2.78=1.22.

Since 1.22 is about half-way between DL and DU, the Durbin-Watson test is inconclusive at the 5% level of significance, and the null hypothesis is not rejected. (i.e. absence of negative autocorrelation is not confirmed)

b. At the 0.01 level for k=2 and 16 observations, DL=0.738 and DU=1.253.

Since 1.22 is just slightly below the DU value of 1.253, we conclude that the null hypothesis is not rejected. (i.e. absence of negative autocorrelation)

## Answer this Question

## Related Questions

- business statistics - When autocorrelation of the residuals is present, what ...
- Statistics - I neep help on two questions! A condition that occurs in multiple ...
- Regression Analysis - 1)Quantity of Beef 2)Price of Beef 3)Price of Pizza 4)...
- statistics - In a one-way ANOVA, there are three independent samples, with n1 8...
- Stats - Instructions for Data Sets: In each data set, the dependent variable (...
- Math - Consider the regression through the origin model y = bx Assume that there...
- Math - Consider the regression through the origin model y = bx Assume that ...
- business statistics - Please, I would the step to do this problem. In a one-way ...
- Business Statistics - Instructions: Prepare your answers using Excel and show ...
- Statistics - Calculate a linear regression, the residuals, and the correlation ...