SCENARIO 13-10 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:
-Referring to Scenario 13-10, it is inappropriate to compute the Durbin- Watson statistic and test for autocorrelation in this case.

Question

SCENARIO 13-10 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: 
-Referring to Scenario 13-10, it is inappropriate to compute the Durbin- Watson statistic and test for autocorrelation in this case.

Quizplus · Accepted Answer

Without the specific details of Scenario 13-10, it's generally true that the Durbin-Watson statistic is used to detect the presence of autocorrelation in the residuals from a statistical regression analysis. If the scenario involves data or a context where autocorrelation is not a concern or the data does not come from a regression model, then computing the Durbin-Watson statistic would indeed be inappropriate.

SCENARIO 13-10 the Management of a Chain Electronic Store Would