SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1 st month is 0:
Linear trend model:

Quadratic trend model:
Third-order autoregressive::

Below is the residual plot of the various models:

-Referring to Scenario 16-13,you can reject the null hypothesis for testing the appropriateness of the second-order autoregressive model at the 5% level of significance.

Question

SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
  The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1 st month is 0:
Linear trend model:
  
Quadratic trend model:
    Third-order autoregressive::
  
Below is the residual plot of the various models:
  
-Referring to Scenario 16-13,you can reject the null hypothesis for testing the appropriateness of the second-order autoregressive model at the 5% level of significance.

Quizplus · Accepted Answer

Without specific details from Scenario 16-13, it's not possible to provide a tailored explanation. However, if the statement claims you can reject the null hypothesis at the 5% level of significance, it implies that the test statistics or p-value obtained from the analysis indicates significant evidence against the null hypothesis, supporting the appropriateness of the second-order autoregressive model.

SCENARIO 16-13 Given Below Is the Monthly Time Series Data for U.S.retail