Exercise 3 answer of Dennehy CFA Mock (Quantitative Methods) states:
The value of the Durbin–Watson statistic is given in Exhibit 1 as 1.890. The critical values are given as 1.63 and 1.72. Because the value (1.890) exceeds the upper critical value (1.72), the Durbin–Watson test fails to reject the null hypothesis of no positive serial correlation.
Shouldn’t it be the opposite? Because 1.89 > 1.72 shouldn’t we reject Ho??
The value of the Durbin–Watson statistic is given in Exhibit 1 as 1.890. The critical values are given as 1.63 and 1.72. Because the value (1.890) exceeds the upper critical value (1.72), the Durbin–Watson test fails to reject the null hypothesis of no positive serial correlation.
Shouldn’t it be the opposite? Because 1.89 > 1.72 shouldn’t we reject Ho??