Recognize the Presence of Autocorrelation in Residuals

question 5

Multiple Choice

Recognize the presence of autocorrelation in residuals.
-Quarterly figures for e-commerce retail sales were obtained from the first quarter of
2001 through the fourth quarter of 2007. A regression model was estimated to describe
The trend in e-commerce retail sales over time. The Durbin Watson statistic was
Calculated as 1.727. Using = .01 we can conclude that
Α

• A) there is evidence of positive autocorrelation.
• B) there is evidence of negative autocorrelation.
• C) there is no evidence of positive or negative autocorrelation.
• D) there is evidence of an outlier.
• E) the test is inconclusive.

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Definitions:

Single Estimate

An approach in project management or forecasting where a single value is used as the most likely outcome without accounting for uncertainty.

Comprehensive

Refers to an all-inclusive, thorough consideration or coverage of a specific topic or area.

Management Function

Fundamental activities such as planning, organizing, leading, and controlling that are performed by managers to achieve organizational goals.

Setting Objectives

The process of outlining specific, measurable, achievable, relevant, and time-bound goals that direct actions and efforts.