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Jim Royo, Manager of Billings Building Supply (BBS), Wants to Develop

Question 26

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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 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 1.14.Using \alpha = 0.05, the appropriate decision is: _________. A) do not reject H<sub>0</sub>: \rho = 0 B) reject H<sub>0</sub>: \rho = 0 C) do not reject H<sub>0</sub>: \rho\neq 0 D) the test is inconclusive E) reject H<sub>0</sub>: \rho ≠ 0 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 1.14.Using \alpha = 0.05, the appropriate decision is: _________. A) do not reject H<sub>0</sub>: \rho = 0 B) reject H<sub>0</sub>: \rho = 0 C) do not reject H<sub>0</sub>: \rho\neq 0 D) the test is inconclusive E) reject H<sub>0</sub>: \rho ≠ 0 Jim's calculated value for the Durbin-Watson statistic is 1.14.Using α\alpha = 0.05, the appropriate decision is: _________.


A) do not reject H0: ρ\rho = 0
B) reject H0: ρ\rho = 0
C) do not reject H0: ρ\rho≠\neq 0
D) the test is inconclusive
E) reject H0: ρ\rho ≠ 0

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