A Regression Model Was Estimated to Describe the Trend in Closing

question 6

Multiple Choice

A regression model was estimated to describe the trend in closing stock prices over 8 months.The Durbin Watson statistic was calculated as 0.5626.Using α = .01 we can conclude that there is evidence of ________________________ .

• A)positive autocorrelation
• B)negative autocorrelation
• C)positive or negative autocorrelation
• D)an outlier
• E)an inconclusive test

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Definitions:

Check Printing

The process of writing and creating checks from a bank account for payment purposes.

Cash Balance

The amount of cash on hand at a given time, reflecting the liquidity position of an entity, as recorded in the financial statements.

Petty Cash Fund

A small amount of cash kept on hand for making immediate, low-value payments instead of writing checks.

Transportation-In

Costs associated with bringing inventory to a business, which are often added to the purchase price of goods.