How To Fix /SAPAPO/AMON_ALERTS445 - MLR: R**2 > Durbin Watson

SAP Error Message - Details

• Message type: E = Error

• Message class: /SAPAPO/AMON_ALERTS -

• Message number: 445

• Message text: MLR: R**2 > Durbin Watson

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/AMON_ALERTS445 - MLR: R**2 > Durbin Watson ?

  The SAP error message /SAPAPO/AMON_ALERTS445 MLR: R**2 > Durbin Watson typically relates to issues in the context of statistical analysis within the SAP Advanced Planning and Optimization (APO) module, particularly when dealing with regression analysis in demand planning.
  Cause:
  This error indicates that the R-squared value (R²) of a regression model is greater than the Durbin-Watson statistic. In regression analysis, R² measures the proportion of variance in the dependent variable that can be explained by the independent variables. The Durbin-Watson statistic tests for the presence of autocorrelation in the residuals from a regression analysis. 
  When R² is greater than the Durbin-Watson statistic, it suggests that the model may be overfitting the data or that there are issues with the residuals, such as autocorrelation, which can lead to unreliable statistical inferences.
  Solution:
  
  
  Check Model Specification: Review the regression model to ensure that it is correctly specified. This includes checking that the right independent variables are included and that the functional form of the model is appropriate.
  
  
  Examine Residuals: Analyze the residuals of the regression model to check for patterns. If there is a clear pattern, it may indicate that the model is not capturing some underlying structure in the data.
  
  
  Address Autocorrelation: If autocorrelation is present, consider using techniques to address it, such as:
  
  Adding lagged variables to the model.
  Using time series models that account for autocorrelation (e.g., ARIMA models).
  Applying transformations to the data.
  
  
  
  Re-evaluate Data: Ensure that the data used for the regression analysis is appropriate. Look for outliers or influential data points that may be skewing the results.
  
  
  Consult Documentation: Refer to SAP documentation or support for specific guidelines related to the APO module and regression analysis.
  
  
  Seek Expert Help: If the issue persists, consider consulting with a data analyst or a statistician who has experience with SAP APO and regression analysis.
  
  
  Related Information:
  
  R-squared (R²): A statistical measure that represents the proportion of variance for a dependent variable that's explained by an independent variable or variables in a regression model.
  Durbin-Watson Statistic: A test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis. Values range from 0 to 4, where a value around 2 indicates no autocorrelation.
  Regression Analysis: A statistical method for estimating the relationships among variables. It includes various techniques for modeling and analyzing several variables.
  
  By addressing the underlying issues indicated by this error message, you can improve the reliability of your regression models in SAP APO.