Dictionary of Accounting Terms: durbin-watson statistic
durbin-watson statistic
summary measureof the amount of autocorrelationin the error terms of theregression. Roughly speaking,if the statistic approaches a value of 2, there is no autocorrelation.If the error terms are highly positively correlated, the statistic would be less than 1 and could get near zero. If the error terms are highly negatively correlated, the statistic would be greater than 3 and could get near the upper limit of 4.
