Do you think it will be important to know how to calculate autocorrelation? I understand the whole test and how to use the autocorrelation of residuals figures, but can’t quite get my head around how they are obtained. It seems these will normally be provided in a table.
Also, is it ok to conclude that there is no serial correlation based on the first few observations? On page 454 of the text book, there are 59 observations in total, and as I understand it, we would need to compare the t-statistics for each of the 59 autocorrelations of residuals with the critical t-value. However, only the first 4 observations are shown and they conclude based on that. Am I missing something?