How To Fix /SAPAPO/MA724 - Durbin-Watson is too high

/SAPAPO/MA724 - Overview

• Message type: E = Error

• Message class: /SAPAPO/MA -

• Message number: 724

• Message text: Durbin-Watson is too high

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/MA724 - Durbin-Watson is too high ?

  The SAP error message /SAPAPO/MA724 Durbin-Watson is too high is related to the statistical analysis performed in the context of demand planning or forecasting within the SAP Advanced Planning and Optimization (APO) module. The Durbin-Watson statistic is a measure used to detect the presence of autocorrelation in the residuals from a regression analysis. A value that is too high indicates that there may be a problem with the model, specifically that the residuals are not behaving as expected.
  
  Cause:
  
  Model Specification Issues: The forecasting model may not be correctly specified, leading to inappropriate relationships between the variables.
  Data Quality: Poor quality data, such as outliers or incorrect values, can skew the results and lead to a high Durbin-Watson statistic.
  Overfitting: The model may be too complex, capturing noise rather than the underlying trend, which can result in high autocorrelation in the residuals.
  Seasonality and Trends: If the data has strong seasonal patterns or trends that