The Durbin-Watson statistic is a test used to detect the presence of autocorrelation in the residuals of a regression analysis. It ranges from 0 to 4, where a value near 2 suggests no autocorrelation, while values towards 0 indicate positive autocorrelation and values towards 4 indicate negative autocorrelation. Understanding this statistic is crucial for evaluating model misspecification and ensuring that the assumptions of linear regression are not violated.
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