Jim Royo,manager of Billings Building Supply (BBS),wants to develop a model to forecast BBS's monthly sales (in $1,000's).He selects the dollar value of residential building permits (in $10,000)as the predictor variable.An analysis of the data yielded the following tables.
Jim's calculated value for the Durbin-Watson statistic is 1.93.Using $\alpha$= 0.05,the appropriate decision is: _________.
A)do not reject H0: $\rho$ = 0
B)reject H0:$\rho$ ≠ 0
C)do not reject: $\rho$ $\neq$ 0
D)the test is inconclusive
E)reject H0: $\rho$ = 0

Question

Jim Royo,manager of Billings Building Supply (BBS),wants to develop a model to forecast BBS's monthly sales (in $1,000's).He selects the dollar value of residential building permits (in $10,000)as the predictor variable.An analysis of the data yielded the following tables.  
 Jim's calculated value for the Durbin-Watson statistic is 1.93.Using $\alpha$= 0.05,the appropriate decision is: _________.
A)do not reject H0: $\rho$ = 0 
B)reject H0:$\rho$ ≠ 0 
C)do not reject: $\rho$ $\neq$ 0 
D)the test is inconclusive 
E)reject H0: $\rho$ = 0

Quizplus · Accepted Answer

The Answer of Jim Royo,manager of Billings Building Supply (BBS),wants to develop a model to forecast BBS's monthly sales (in $1,000's).He selects the dollar value of residential building permits (in $10,000)as the predictor variable.An analysis of the data yielded the following tables.  
 Jim's calculated value for the Durbin-Watson statistic is 1.93.Using $\alpha$= 0.05,the appropriate decision is: _________.
A)do not reject H0: $\rho$ = 0 
B)reject H0:$\rho$ ≠ 0 
C)do not reject: $\rho$ $\neq$ 0 
D)the test is inconclusive 
E)reject H0: $\rho$ = 0

Jim Royo,manager of Billings Building Supply (BBS),wants to Develop a Model