Intro to Probability for Business
The Durbin-Watson statistic is a test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis. It measures the degree to which the residuals (errors) from a model are correlated with each other, providing insight into whether the assumptions of the regression model are met. A value close to 2 suggests no autocorrelation, while values significantly below or above 2 indicate positive or negative autocorrelation, respectively.
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