SCENARIO 13-5 The Managing Partner of an Advertising Agency Believes That His

question 37

Multiple Choice

SCENARIO 13-5
The managing partner of an advertising agency believes that his company's sales are related to the
industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with
the following results: Durbin-Watson Statistic 1.59
-Referring to Scenario 13-5, the partner wants to test for autocorrelation using the Durbin-Watson
Statistic.Using a level of significance of 0.05, the decision he should make is:

• A) there is evidence of autocorrelation.
• B) the test is unable to make a definite conclusion.
• C) there is no evidence of autocorrelation.
• D) there is not enough information to perform the test.

---

Definitions:

Acquitted

A legal term meaning someone has been found not guilty of a crime in a court of law.

Insanity Defense

A legal defense by which a defendant argues that they should not be held criminally responsible for their actions due to mental illness.

Not Guilty by Reason of Insanity

A legal defence where the defendant is considered not responsible for their actions due to mental illness at the time of the crime.

Felony Cases

Legal cases that involve serious crimes, typically punishable by imprisonment for more than one year or by death.