Consider the Following to Answer the Question(s) Below

question 8

Multiple Choice

Consider the following to answer the question(s) below:
Monthly closing stock prices for a utility company were obtained from January 2014 through August 2015. 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 autocorrelation.
• D) there is no evidence of negative autocorrelation.
• E) as dL < 0.5626 < dU, the test is inconclusive.

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Definitions:

Recursion

A programming technique where a method calls itself to solve a problem.

Binary Search Algorithm

An efficient algorithm for finding an item from a sorted list of items, working by repeatedly dividing in half the search interval and comparing the middle item to the target value.

Worst-Case Running Time

The maximum amount of time an algorithm can take to complete for any input of size n.

Recursive Method Call

A process where a method in a programming language calls itself in order to solve a problem by breaking it down into simpler sub-problems.