Test Correlation Residuals. Durbin Watson d statistics from the STATA command is 2494 which lies between 4-dl and 4 implying there is a negative serial correlation between the residuals in the model. Use the Durbin-Watson statistic to test for the presence of autocorrelation.
If there is auto-correlation then there should be a linear relationship between consecutive residuals. In statistics and optimization errors and residuals are two closely related and easily confused measures of the deviation of an observed value of an element of a statistical sample from its theoretical value. There are eighty quarterly observations in the regression which is of the form.
The p -value is the combined area in both tails.
First figure out the linear model using the function lm response_variable explanatory_variable. Minitab provides two ways to determine whether residuals are correlated. Then use the function resid linear_model to calculate the residuals. Mod lmprices1 prices2 res modres n lengthres mod2 lmres-n res-1 summarymod2.
