After a Linear Forecasting Model Is Found for a Time

question 41

Multiple Choice

After a linear forecasting model is found for a time series,if the Durbin-Watson statistic is less than d_L this means that:

• A)no positive autocorrelation exists,the linear model is adequate.
• B)positive autocorrelation exists,a nonlinear model should be tried.
• C)no positive autocorrelation exists,a nonlinear model should be tried.
• D)positive autocorrelation exists,the linear model is adequate.

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Definitions:

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output supplied by all producers in the market.

Constant Costs

Costs that remain stable in total over a wide range of activity levels but may vary per unit.

Maximizing Profits

Striving to achieve the highest possible profit level by adjusting production levels, pricing strategies, or operational efficiencies.

Total Revenue

The sum of all earnings a company acquires from selling goods or offering services over a specific timeframe.