When Perfect Positive Autocorrelation Is Present in a Time Series

question 22

Multiple Choice

When perfect positive autocorrelation is present in a time series, the Durbin- Watson statistic will be equal to _________ .

• A)3
• B)0
• C)4
• D)1

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Definitions:

Profit Maximizing

The strategy or technique of optimizing production and pricing for the utmost profit.

AVC Curve

The Average Variable Cost curve, showing the per-unit variable cost of production at different levels of output.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Fizzle & Sizzle

An informal term indicating the contrasting outcomes of events or products; "fizzle" for failing and "sizzle" for succeeding amazingly.