How To Fix /SAPAPO/MA725 - Durbin Watson is too small

/SAPAPO/MA725 - Overview

• Message type: E = Error

• Message class: /SAPAPO/MA -

• Message number: 725

• Message text: Durbin Watson is too small

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message /SAPAPO/MA725 - Durbin Watson is too small ?

  The SAP error message /SAPAPO/MA725 Durbin Watson is too small typically occurs in the context of demand planning or forecasting within the SAP Advanced Planning and Optimization (APO) module. This error is related to the Durbin-Watson statistic, which is used to detect the presence of autocorrelation in the residuals from a regression analysis. A Durbin-Watson statistic that is too small indicates that there may be positive autocorrelation in the residuals, which can suggest that the model is not adequately capturing the underlying data patterns.
  
  Cause:
  
  Model Specification Issues: The forecasting model may not be correctly specified, leading to poor fit and autocorrelation in the residuals.
  Data Quality: Poor quality data, such as outliers, missing values, or incorrect data entries, can affect the regression analysis and lead to a low Durbin-Watson statistic.
  Insufficient Data: A small dataset may not provide enough information for the model to accurately capture the underlying patterns, leading to autocorrelation.
  Seasonality or