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Thread: Durbin-Watson upper critical value is higher than 2, what now?

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    Durbin-Watson upper critical value is higher than 2, what now?


    I have a home assignment in econometrics. I work with Gretl, on the Ramanathan data9-10 datafile. I have done an OLS model with all the input variables (15 in total, with 8 dummy variables among them) and I wanted to test the model for autocorrelation with Durbin-Watson test. I have selected Tool --> Statistical tables --> DW, and I have typed in the necessary numbers in the fields. My problem, is this:

    dL = 1,1293
    dU = 2,1542

    DW test value = 1,5595

    My problem is that I don't know how to build up a decision-table with this dU. I have uploaded an attachment for you to see what I have been trying with, but I don't think it's okay this way. In all my econometrics books it is written, that dU is always before 2, not after it. What should I do? I'm really pissed by this problem, as I have wasted so much f*cking time searching the web or a solution, and still didn't find any. Any help would be greatly appreciated.
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