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:

Real Output

The production of goods and services valued at constant prices, thus removing the effect of inflation.

Price Level

The calculated mean price level for the entire range of economic goods and services.

Nominal GDP

The gross domestic product measured in current prices, without adjusting for inflation.

Money Supply

The overall count of money resources within an economy at a pinpointed moment, incorporating physical currency as well as balances in savings and checking accounts.