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    Question

    When the value of d=4, in case of Durbin-Watson Test, what should be done with the null hypothesis?

    A Reject Null Hypothesis as there is positive autocorrelation Correct Answer Incorrect Answer
    B Accept Null Hypothesis as there is negative autocorrelation Correct Answer Incorrect Answer
    C Accept Null Hypothesis as there is no autocorrelation Correct Answer Incorrect Answer
    D Reject Null Hypothesis as there is negative autocorrelation Correct Answer Incorrect Answer

    Solution

    Null hypothesis in DW test is that there is no Autocorrelation. But when d=4, there is perfect negative correlation. So we will reject the Null hypothesis.

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