When testing for the presence of positive autocorrelation and the Durbin- Watson statistic is less than the lower critical value, which one of the following statements is true?
A)We reject the null hypothesis and conclude that a positive autocorrelation is present in the time series.
B)We fail to reject the null hypothesis and conclude that no positive autocorrelation is present in the time series.
C)The hypothesis test is inconclusive.
D)We fail to reject the null hypothesis and conclude that a positive autocorrelation is present in the time series.

Question

Quizplus · Accepted Answer

When the Durbin-Watson statistic is less than the lower critical value, it indicates evidence against the null hypothesis of no autocorrelation, suggesting that positive autocorrelation is present in the data.

When Testing for the Presence of Positive Autocorrelation and the Durbin-