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

Question

Quizplus · Accepted Answer

When the Durbin-Watson statistic is greater than the upper critical value, it suggests that there is not enough evidence to indicate the presence of positive autocorrelation, leading to the failure to reject the null hypothesis of no positive autocorrelation.

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