The marketing manager of a large supermarket chain would lik

The marketing manager of a large supermarket chain would like to use shelf space to predict the sales of pet food. A random sample of 12 equal-sized stores is selected. The shelf space (X) and sales for the week in dollars (Y) are observed. Is h necessary to compute the Durbin Watson statistic in this case? Explain. Under what circumstances is it necessary to compute the Durbin-Watson statistic before proceeding with the least-squares method of regression analysis? Select the correct answer below. Yes, because the number of observations is sufficiently small that autocorrelation is a concern. No, because the number of observations is sufficiently small that autocorrelation is not a concern. No, because the data were not collected over time. Yes, h is always necessary to compute the Durbin-Watson statistic Select the correct answer below If a larger number of stores had been selected, it would be necessary to compute the

Solution

Yes it is always necessary to compute the Durbin Watson statisic