Author Question: In testing a hypothesis, statements for the null and alternative hypotheses as well as the selection ... (Read 124 times)

jjjetplane · **on:** Jun 24, 2018

In testing a hypothesis, statements for the null and alternative hypotheses as well as the selection of the level of significance should precede the collection and examination of the data.
Indicate whether the statement is true or false

Question 2

Test the hypotheses H0: no first-order autocorrelation vs. H1: first-order autocorrelation, given that: Durbin-Watson Statistic d = 1.89, n = 28, k = 3, and = 0.01.

randomguy133 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

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Answer to Question 2

dL = 0.97 and dU = 1.41
The decision is made as follows:
If d < dL = 0.97 or d > 4 - dL = 3.03, reject the null hypothesis and conclude that the autocorrelation is present.
If 0.97 = dL d dU = 1.41, or 2.59 = 4 - dU d 4 - dL = 3.03, we say that the test is inconclusive.
If 1.41 = dU d 4 - dU = 2.59, we conclude that there is no evidence of autocorrelation.
Since d = 1.89, we conclude that there is no evidence of autocorrelation.