Solved

Suppose an Economist Has Developed a Model for Forecasting Annual

Question 29

Multiple Choice

Suppose an economist has developed a model for forecasting annual consumption,yt,as function of total labor income,x1t,and total property income,x2t based on 20 years on annual data.The following regression model has been developed: Suppose an economist has developed a model for forecasting annual consumption,y<sub>t</sub>,as function of total labor income,x<sub>1</sub><sub>t</sub>,and total property income,x<sub>2</sub><sub>t</sub> based on 20 years on annual data.The following regression model has been developed: = 7.81 + 0.91x<sub>1</sub><sub>t </sub>+ 0.57x<sub>2</sub><sub>t</sub> with the standard error = 1.29 and the Durbin-Watson d statistic = 2.09.Using an alpha = .05,which of the following is the correct critical value for testing whether the residuals are autocorrelated? A) 1.20 and 1.41 B) 1.10 and 1.54 C) 1.08 and 1.53 D) Can't be determined without seeing the residuals. = 7.81 + 0.91x1t + 0.57x2t with the standard error = 1.29 and the Durbin-Watson d statistic = 2.09.Using an alpha = .05,which of the following is the correct critical value for testing whether the residuals are autocorrelated?


A) 1.20 and 1.41
B) 1.10 and 1.54
C) 1.08 and 1.53
D) Can't be determined without seeing the residuals.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q25: A company has recorded the 12 months

Q28: Which of the following is true about

Q35: In a recent meeting, the marketing manager

Q50: While virtually all time series exhibit a

Q54: Which of the following approaches might be

Q61: In a double smoothing model, the second

Q102: The reason for testing for the presence

Q103: If the Durbin-Watson test leads you to

Q107: A seasonally unadjusted forecast is one that

Q124: If a manager is planning for an