TABLE 12-5 The Managing Partner of an Advertising Agency Believes That His

Multiple Choice

TABLE 12-5
The managing partner of an advertising agency believes that his company's sales are related to the industry sales. He uses Microsoft Excel to analyze the last four years of quarterly data (i.e., n = 16) with the following results:

-If the Durbin-Watson statistic has a value close to 0, which assumption is violated?

A) normality of the errors
B) independence of errors
C) homoscedasticity
D) none of the above