Use the following to answer the question(s) below.
Weekly commodity prices for heating oil (in cents) were obtained and regressed against time. Below is the regression output and residual plots from fitting a linear model.
-The Durbin-Watson statistic indicates
A) that the residuals are positively autocorrelated
B) that the residuals are negatively autocorrelated
C) that the residuals are not autocorrelated
D) that the test is inconclusive
E) The Durbin-Watson statistic cannot be used for this model.

Question

Use the following to answer the question(s) below.
Weekly commodity prices for heating oil (in cents) were obtained and regressed against time. Below is the regression output and residual plots from fitting a linear model.    
-The Durbin-Watson statistic indicates
A) that the residuals are positively autocorrelated 
B) that the residuals are negatively autocorrelated 
C) that the residuals are not autocorrelated 
D) that the test is inconclusive 
E) The Durbin-Watson statistic cannot be used for this model.

Quizplus · Accepted Answer

The Durbin-Watson statistic ranges from 0 to 4, with values less than 2 indicating positive autocorrelation of residuals.

Use the Following to Answer the Question(s) Below