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

Question 80

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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:  Regression Statistics  Multiple R 0.802 R Square 0.643 Adjusted R Square 0.618 Standard Error Syv 0.9234 Observations 16\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
 df  SS  MS  F  Sig.F  Regression 121.49721.49725.270.000 Error 1411.9120.851 Total 1533.409\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}


 Predictor Coef  StdError t Stat  P-value  Intercept 3.9621.4402.750.016 Industry 0.0404510.0080485.030.000\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}

 Durbin-Watson Statistic 1.59\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 critical values of the test are dL = , and dU = _.

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