Test the hypothesis that there was no autocorrelation versus the alternative of negative autocorrelation in errors
What will be an ideal response?
The appropriate null and alternative hypotheses are H0 : ρ = 0, H1 : ρ < 0.
d = 2.28, n = 25, K = 2.
The cutoff points for the distribution of the Durbin-Watson test statistic are dL = 1.21 and dU = 1.55 (for α = 0.05 ) and dL = 0.98 and dU = 1.30 (for α = 0.01 )
The decision rule is as follows:
Reject H0 if d > 4 - dL
Accept H0 if d < 4 - dU
Test is inconclusive if 4 - dU < d < 4 - dL
Since 2.28 < 4 - dU = 2.45 and 2.28 < 4 - dL = 2.79, we fail to reject H0 at both levels of significance. The Durbin-Watson test gives sufficient evidence to conclude that there is no autocorrelation in the errors of the regression models at both the 5% and 1% levels.
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The financial statements for Barrington Service Company include the following items:
A) 1.15
B) 0.87
C) 3.83
D) 6.48
An adjusting entry will not take the format of which one of the following entries?
a. A debit to an expense account and a credit to an asset account b. A debit to an expense account and a credit to a revenue account c. A debit to an asset account and a credit to a revenue account d. A debit to a liability account and a credit to a revenue account
How would Terrance most likely benefit from aligning the sales process with the customer's buying process?
A) lower advertising and marketing costs B) greater efficiency with fewer salespeople C) lower travel expenses due to fewer customer visits D) greater success in making sales due to understanding how buyers buy E) fewer returns from customers who felt pressured into making transactional purchases
Final proofreading of an important business document should typically be done
a. from the computer screen. b. from a draft paper copy. c. from a final copy on company letterhead. d. from an archive file copy.