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 month is 0: 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 third-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  month is 0:  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 third-order autoregressive model at the 5% level of significance.

Quizplus · Accepted Answer

The scenario does not provide any information on the testing of the appropriateness of the third-order autoregressive model, so it cannot be concluded whether the null hypothesis can be rejected or not. The scenario does not provide enough information or results of tests to determine whether the null hypothesis for the third-order autoregressive model can be rejected at the 5% level of significance.

SCENARIO 16-13 Given Below Is the Monthly Time Series Data