An energy analyst wants to test if U.S. oil production is random over time. The analyst has monthly production values for the two years. The analyst finds 12 months are above the median, 12 months are below the median, six runs are below the median, and five runs are above the median. For the Wald-Wolfowitz runs test, the value of R is ________.
A) 5
B) 6
C) 11
D) 12

Question

Quizplus · Accepted Answer

The formula for the Wald-Wolfowitz runs test is R = smaller of (number of runs below median, number of runs above median). In this case, the smaller value is 5, so R = 5. Therefore, the answer is choice A) 5.

An Energy Analyst Wants to Test If U