SCENARIO 13-12 The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours)it takes to record a loan application.Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded.Below is the regression output:
-Referring to Scenario 13-12, there is no evidence of positive autocorrelation if the Durbin-Watson test statistic is found to be 1.78.

Question

SCENARIO 13-12 The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours)it takes to record a loan application.Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded.Below is the regression output:   
-Referring to Scenario 13-12, there is no evidence of positive autocorrelation if the Durbin-Watson test statistic is found to be 1.78.

Quizplus · Accepted Answer

The Durbin-Watson test statistic measures the presence of autocorrelation. A value of 2 indicates no autocorrelation, while values closer to 0 or 4 indicate positive or negative autocorrelation, respectively. A value of 1.78 is closer to 2, indicating no evidence of positive autocorrelation. Therefore, the statement is true.

SCENARIO 13-12 the Manager of the Purchasing Department of a Large