SCENARIO 12-5
the Managing Partner of an Advertising Agency Believes

SCENARIO 12-5
The managing partner of an advertising agency believes that his company's sales are related to the industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with the following results: $\begin{array}{ll}{\text { Regression Statistics }} \\\text { Multiple R } & 0.802 \\\text { R Square } & 0.643 \\\text { Adjusted R Square } & 0.618 \\\text { Standard Error Syv } & 0.9234\\\text { Observations } & 16\end{array}$
ANOVA
$\begin{array}{lrrrcc} & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { Sig.F } \\\text { Regression } & 1 & 21.497 & 21.497 & 25.27 & 0.000 \\\text { Error } & 14 & 11.912 & 0.851 & & \\\text { Total } & 15 & 33.409 & & &\end{array}$


$\begin{array}{llll}\text { Predictor Coef } & \text { StdError } t \text { Stat } & \text { P-value }\\\hline\text { Intercept }& 3.962 & 1.440 & 2.75 & 0.016 \\\text { Industry } &0.040451 & 0.008048 & 5.03 & 0.000\end{array}$

$\text { Durbin-Watson Statistic } \quad 1.59$
-Referring to Scenario 12-5, the partner wants to test for autocorrelation using the Durbin-Watson statistic.Using a level of significance of 0.05, the decision he should make is:

A) there is evidence of autocorrelation.
B) the test is unable to make a definite conclusion.
C) there is no evidence of autocorrelation.
D) there is not enough information to perform the test.