Common use of Autocorrelation test Clause in Contracts

Autocorrelation test. To be sure that the residuals are free from autocorrelation complicity in the estimated model, this study conducted serial correlation test using ▇▇▇▇▇▇▇-▇▇▇▇▇▇▇ approach and the results were shown on the Table 5. F-statistic 0.327369 Prob. F(2,7) 0.7313 Obs*R-squared 1.368537 Prob. Chi-Square(2) 0.5045 The null hypothesis (H0) for this test is that the residuals are uncorrelated serially. Looking at Table 5, the F-stat p-value is 0.7313, which greater than 0.01 and 0.05 critical values; it shows that we could not reject the null hypothesis at both 1% and 5% significance levels. Hence, we concluded that the residuals were uncorrelated serially and the coefficients produced by the estimated model were not biased.

Autocorrelation test. To be sure that the residuals are free from autocorrelation complicity in the estimated model, this study conducted serial correlation test using ▇▇▇▇▇▇▇-▇▇▇▇▇▇▇ approach and the results were shown on the Table 5. F-statistic 0.327369 Prob. F(2,7) 0.7313 Obs*R-squared 1.368537 Prob. Chi-Square(2) 0.5045 The null hypothesis (H0) for this test is that the residuals are uncorrelated serially. Looking at Table 54.5, the F-stat p-value is 0.7313, which greater than 0.01 and 0.05 critical values; it shows that we could not reject the null hypothesis at both 1% and 5% significance levels. Hence, we concluded that the residuals were uncorrelated serially and the coefficients produced by the estimated model were not biased.