Recognize the Presence of Autocorrelation in Residuals

Multiple Choice

Recognize the presence of autocorrelation in residuals.
-Monthly closing stock prices for a utility company were obtained from January 2007
Through August 2008. A regression model was estimated to describe the trend in closing
Stock prices over time. The Durbin Watson statistic was calculated as 0.5626. Using
= ) 01 we can conclude that
Α

A) there is evidence of positive autocorrelation.
B) there is evidence of negative autocorrelation.
C) there is no evidence of positive or negative autocorrelation.
D) there is evidence of an outlier.
E) the test is inconclusive.