Q6. Le can conclude that the model is:

A)   not properly specified because there is evidence of autocorrelation in the residuals and the Durbin-Watson statistic is not significant.

B)   properly specified because the Durbin-Watson statistic is not significant.

C)   properly specified because there is no evidence of autocorrelation in the residuals.

Q7. What is the 95% confidence interval for the sales in the first quarter of 2004?

A)   0.158 to 0.354.

B)   0.197 to 0.305.

C)   0.168 to 0.240.

Q8. With respect to heteroskedasticity, we can say:

A)   heteroskedasticity is not a problem because the DW statistic is not significant.

B)   nothing.

C)   an ARCH process exists because the autocorrelation coefficients of the residuals have different signs.

Q9. Using the provided information, the forecast for the 2nd quarter of 2004 is:

A)   0.192.

B)   0.250.

C)   0.253.

[em65]

thanx