SCENARIO 12-10
The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars) for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results: $$\begin{array} { | l | c | }
\hline \text { Customers } & \begin{array} { l }
\text { Sales } \
\text { (Thousands of } \
\text { Dollars) }
\end{array} \
\hline 907 & 11.20 \
\hline 926 & 11.05 \
\hline 713 & 8.21 \
\hline 741 & 9.21 \
\hline 780 & 9.42 \
\hline 898 & 10.08 \
\hline 510 & 6.73 \
\hline 529 & 7.02 \
\hline 460 & 6.12 \
\hline 872 & 9.52 \
\hline 650 & 7.53 \
\hline 603 & 7.25 \
\hline
\end{array}$$
-Referring to Scenario 12-10, it is inappropriate to compute the Durbin-Watson statistic and test for autocorrelation in this case.

Question

SCENARIO 12-10
The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars) for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results: $$\begin{array} { | l | c | } 
\hline \text { Customers } & \begin{array} { l } 
\text { Sales } \
\text { (Thousands of } \
\text { Dollars) }
\end{array} \
\hline 907 & 11.20 \
\hline 926 & 11.05 \
\hline 713 & 8.21 \
\hline 741 & 9.21 \
\hline 780 & 9.42 \
\hline 898 & 10.08 \
\hline 510 & 6.73 \
\hline 529 & 7.02 \
\hline 460 & 6.12 \
\hline 872 & 9.52 \
\hline 650 & 7.53 \
\hline 603 & 7.25 \
\hline
\end{array}$$
-Referring to Scenario 12-10, it is inappropriate to compute the Durbin-Watson statistic and test for autocorrelation in this case.

Quizplus · Accepted Answer

The Durbin-Watson statistic is used to detect the presence of autocorrelation in the residuals from a regression analysis. However, it is typically applied in time series data where the order of observations is important. In this scenario, the data provided does not indicate a time series context but rather a cross-sectional analysis of different stores, making the test for autocorrelation using Durbin-Watson inappropriate.

SCENARIO 12-10 the Management of a Chain Electronic Store Would

SCENARIO 12-10
the Management of a Chain Electronic Store Would