If you suspect that your trend forecasting model may have autocorrelated forecast errors, it is appropriate to compute
A) the Durbin-Watson test statistic.
B) the MAD.
C) the MSE.
D) the MAPE.
E) the correlation coefficient.

Question

Quizplus · Accepted Answer

The Durbin-Watson test statistic is used to test for the presence of autocorrelation in the residuals of a regression model or time series data. If the test statistic is close to 2, then there is no significant autocorrelation. However, if the test statistic is less than 2, then there is evidence of positive autocorrelation, and if it is greater than 2, then there is evidence of negative autocorrelation. Hence, the most appropriate choice in this case is the Durbin-Watson test statistic to check for autocorrelated forecast errors.

If You Suspect That Your Trend Forecasting Model May Have