A Regression Was Estimated Using These Variables: Y = Annual

question 90

Multiple Choice

A regression was estimated using these variables: Y = annual value of reported bank robbery losses in all U.S. banks ($ millions) , X = annual value of currency held by all U.S. banks ($ millions) , n = 100 years (1912 through 2011) . We would not anticipate:

• A)autocorrelated residuals due to time-series data.
• B)heteroscedastic residuals due to the wide variation in data magnitudes.
• C)nonnormal residuals due to skewed data as bank size increases over time.
• D)a negative slope because banks hold less currency when they are robbed.

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