Author Question: Test the model for autocorrelated errors. What will be an ideal ... (Read 97 times)

TFauchery

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Test the model for autocorrelated errors.
 
  What will be an ideal response?

Question 2

List the assumptions when arrivals are governed by a Poisson process.
 
  What will be an ideal response?


sailorcrescent

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Answer to Question 1

The appropriate null and alternative hypotheses are H0 :  = 0, H1 :  > 0
d =1.34, n = 35, K = 4.
The cutoff points for the distribution of the Durbin-Watson test statistic are dL= 1.22 and dU = 1.73 (for  = 0.05 ) and dL= 1.03 and dU = 1.51 (for = 0.01 )
The decision rule is as follows:
Reject H0 if d < dL
Accept H0 if d > dU
Test is inconclusive if dL < d < dU
Since 1.22 < 1.34 < 1.73 and 1.03 < 1.34 < 1.51, Durbin-Watson test gives inconclusive results at both the 5 and 1 levels.

Answer to Question 2

Many models assume that arrivals are governed by a Poisson process. This means that:
1 ) Customers arrive one at a time, independently of each other and at random.
2 ) Past arrivals do not influence future arrivals; that is, the probability that a customer arrives at any point in time does not depend on when other customers arrived (sometimes we say that the system has no memory).
3 ) The probability of an arrival does not vary over time (the arrival rate is stationary).



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