Author Question: The correlation coefficient is a number between ________. A) 0 and +1 B) -1 and 0 C) -1 and +1 ... (Read 161 times)

mcmcdaniel · **on:** Jun 24, 2018

The correlation coefficient is a number between ________.

A) 0 and +1
B) -1 and 0
C) -1 and +1
D) -2 and +2

Question 2

Test the hypothesis that there was no autocorrelation versus the alternative of positive autocorrelation in errors.

What will be an ideal response?

yasmina · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

A

Answer to Question 2

The appropriate null and alternative hypotheses are H0 : = 0, H1 : > 0.
d = 0.64, n = 30, K = 3.
The cutoff points for the distribution of the Durbin-Watson test statistic are dL = 1.21 and dU = 1.65 (for = 0.05 ) and dL = 1.01 and dU = 1.42 (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 0.64 < 1.21 and 0.64 < 1.01, we reject H0 at both levels of significance. The Durbin-Watson test gives sufficient evidence to conclude that the errors are positively autocorrelated at both the 5 and 1 levels.