Durbin watson statistic, Advanced Statistics

The Null Hypothesis - H0: There is no first order autocorrelation

The Alternative Hypothesis - H1: There is first order autocorrelation

Durbin-Watson statistic = 1.98307

 

2234_Durbin watson statistic.png

The Durban Watson (DW) Statistic shows the existence of auto correlation. In this case the value of DW is 1.98307 which is between dU 1.91110 and the dL value of 1.91912 (1.91110<1.98307<2.191912) this indicates that we do not reject H0 as there is sufficient evidence to suggest that there is no first order autocorrelation as evident from the Durban Watson analysis as well.

See appendix Durban Watson Statistic: (5 Per Cent Significance Points of dL and dU). The n value 1519 is represented in this case as 1500 alongside the k'= 4.

Lack of fit test

Possible curvature in variable totexp  (P-Value = 0.000 )

Possible interaction in variable income  (P-Value = 0.000 )

Overall lack of fit test is significant at P = 0.000

Posted Date: 3/4/2013 5:08:39 AM | Location : United States







Related Discussions:- Durbin watson statistic, Assignment Help, Ask Question on Durbin watson statistic, Get Answer, Expert's Help, Durbin watson statistic Discussions

Write discussion on Durbin watson statistic
Your posts are moderated
Related Questions
Dear Experts, Please note that I''m doing a PhD in Business management under the title: Technology transfer and competitive advantage in Qatar oil and gas companies. It is a quant

Lorenz curve : Essentially the graphical representation of cumulative distribution of the variable, most often used for the income. If the risks of disease are not monotonically in


Negative binomial distribution is the probability distribution of number of failures, X, before the kth success in the sequence of Bernoulli trials where the probability of succes

Band matrix: A matrix which has its non zero elements arranged uniformly near to the diagonal, so that aij = 0 if (i - j)> ml or (j - i)> mu where aij are the elements of matrix a

Blinder Oaxaca method: A method or technique used for assessing the effect of the role of income on racial wealth gap. The method or technique is based on the decomposition of the

Advantages and disadvantages of Integrated Economic Statistics

Percentile : The set or group of divisions which produce exactly 100 equal parts in the series of continuous values, like blood pressure, height, weight, etc. Hence a person with b

Prevalence : The measure of the number of people in a population who have a certain disease at a given point in time. It c an be measured by two methods, as point prevalence and p

Mann Whitney test is a distribution free test which is used as an alternative to the Student's t-test for assessing that whether the two populations have the same median. The test