Use the Following to Answer the Question(s) Below

question 34

Multiple Choice

Use the following to answer the question(s) below.
Weekly commodity prices for heating oil (in cents) were obtained and regressed against time. Below is the regression output and residual plots from fitting a linear model.
-The Durbin-Watson statistic indicates

• A) that the residuals are positively autocorrelated
• B) that the residuals are negatively autocorrelated
• C) that the residuals are not autocorrelated
• D) that the test is inconclusive
• E) The Durbin-Watson statistic cannot be used for this model.

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Definitions:

Precious Metal

Rare, naturally occurring metallic elements of high economic value, typically used for currency, jewelry, and other arts because of their rarity, durability, and aesthetic qualities.

Fiat Money

A form of money officially accepted as legal tender, not supported by a real commodity, as declared by authorities.

Commodity Money

Money whose value comes from a commodity of which it is made, such as gold or silver, with intrinsic value.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power.