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

question 77

Multiple Choice

TABLE 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 (i.e., n = 16) with the following results:
-Referring to Table 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.

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Definitions:

Input

Resources used in the production process, including labor, materials, machinery, and other factors of production.

Demand

The volume of goods or services that individuals are prepared and financially able to acquire at varying price points during a certain time span.

Perfectly Competitive Labor Market

A theoretical market where numerous employers and employees interact, with no single entity able to influence wages or working conditions.

Wages

The compensation received by employees for their labor, typically expressed as an hourly rate or annual salary.