The Durbin-Watson Statistic Is Based on the ________

question 11

Multiple Choice

The Durbin-Watson statistic is based on the ________.

• A)differences between successive residuals in a time series
• B)differences between successive sales in a time series
• C)differences between typical sales indexes
• D)differences in time periods

---

Definitions:

Deposits

Funds placed into an account at a banking institution, typically earning interest over time.

Compounds Interest

Refers to the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.

Future Value

The value of an investment at a specified date in the future, taking into account factors like interest rates and compounding.

Compounded Monthly

Refers to the process of calculating interest on both the initial principal and accrued interest from previous periods on a monthly basis.