Recognize the Presence of Autocorrelation in Residuals

question 18

Multiple Choice

Recognize the presence of autocorrelation in residuals.
-Monthly closing stock prices for a utility company were obtained from January 2007
Through August 2008. A regression model was estimated to describe the trend in closing
Stock prices over time. The Durbin Watson statistic was calculated as 0.5626. 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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