Consider the Following to Answer the Question(s) Below

question 11

Multiple Choice

Consider the following to answer the question(s) below:
Monthly closing stock prices for a utility company were obtained from January 2007 through August 2008. A regression model was estimated to describe the trend in closing stock prices over time.
-Suppose that for the regression model estimated using the data described, the Durbin-Watson statistic was calculated as 0.5626. Using α = 0.01 we can conclude that

• A) There is evidence of positive autocorrelation.
• B) There is evidence of negative autocorrelation.
• C) There is no evidence of positive or negative autocorrelation.
• D) There is evidence of an outlier.
• E) The test is inconclusive.

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Definitions:

Region of Rejection

The range of values in hypothesis testing that leads to rejection of the null hypothesis, indicating statistical significance.

Alternative Hypothesis

The hypothesis that proposes there is an effect, or there is a difference, contrary to the null hypothesis.

Unshaded Area

In the context of data visualization, it refers to parts of a graph or chart that are not marked by patterns or colors and may represent certain values or categories.

Shaded Area

In graphical representations, the shaded area usually refers to the region under the curve of a distribution, often used to indicate probabilities or portions within a range.