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:

Prescribed Controls

Specific procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and comply with laws and regulations.

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check.

Bank Checking Account

A bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used for managing daily transactions.

Internal Controls

Procedures and mechanisms established by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.