After a linear forecasting model is found for a time series, if the Durbin-Watson statistic is less than dL this means that:
A) no positive autocorrelation exists, the linear model is adequate.
B) positive autocorrelation exists, a nonlinear model should be tried.
C) no positive autocorrelation exists, a nonlinear model should be tried.
D) positive autocorrelation exists, the linear model is adequate.
B
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The marketing cost of retaining customers is much higher than the cost of replacing them
Indicate whether the statement is true or false
Which one of the following would be the least reliable type of evidence?
a. Confirmations returned by bank directly to the auditor. b. Letters of communication from the Securities Exchange Commission. c. Physical examination of perpetual inventory. d. Evidence from an easily overridden information system.
What accounting concept justifies the use of accruals and deferrals?
a. Going-concern assumption b. Corporate form of organization c. Consistency characteristic d. Arm's-length transactions
Use the following company information to calculate net cash provided or used by investing activities:(a) Equipment with a book value of $175,000 and an original cost of $300,000 was sold at a loss of $17,000.(b) Paid $62,000 cash for a new truck.(c) Sold land costing $32,000 for $36,000 cash, realizing a $4,000 gain.(d) Purchased treasury stock for $61,000 cash.(e) Long-term investments in stock are sold for $41,000 cash, realizing a gain of $3,500.
What will be an ideal response?