Quant questions from sample 1 about, should, understand

fishmarket

Why did they say the DW has upper bound of 1.73 in Q11? isnt it supposed to be 2? and when DW says it is about 1.9, there should be no serial corelation, right?

I also didnt understand Q9's answer

xilinx_altera

I remeber doing an EOC question that said if the DW Stat is "near" 2...you will need to test for correlation..

Analyze_This

as per notes, less than 2 is positive serial corelation and above 2 is negative serial corelation. But i thought 1.9 can be approximated as 2 i guess not

tarunajwani

0 correlation should be around 2....but if the upper bound is given at 1.7 and and the DW is 1.9 i would assume it would be negative correlation?

madaochenggong

AudreyMwala Wrote:
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> if i can remember well, i think if its below 2,
> its i.e. 1.9 its negative serial correlation above
> 2 its positive serial correlation


AudreyMwala - it's the other way round. 0=perfect positive serial correlation; 4=perfect negative serial correlation and 2=no correlation. DW formula = 2(1-r)

sumz - not sure, that's the first time I have come across upper and lower bounds in relation to a DW test :-( I did practice test 1 today and crashed in the Quant item set.

bdavi77962

if i can remember well, i think if its below 2, its i.e. 1.9 its negative serial correlation above 2 its positive serial correlation