Suppose That for a Time-Series Model with One Predictor, You

question 89

Multiple Choice

Suppose that for a time-series model with one predictor, you compute a Durbin-Watson statistic D = 1.409.Assume that n = 30 and α = 0.01.Then your decision is to ______.

• A)fail to reject the null hypothesis D = 0
• B)reject the null hypothesis D = 0
• C)fail to reject the null hypothesis ρ = 0
• D)reject the null hypothesis ρ = 0
• E)fail to reject the null hypothesis ρ > 0

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Definitions:

Normally Distributed

Describes a statistical distribution where the arrangement is balanced around the mean, indicating that observations close to the mean happen more often than those further away.

Regression Line

A line of best fit through a dataset in regression analysis, showing the relationship between the independent and dependent variables.

Sum Of Squares

The total of the squared differences between each observation and the overall mean.

Data Points

Individual pieces of factual information recorded and used for the purpose of analysis.