Question

A​ mail-order catalog business maintains a centralized warehouse for the distribution of products ordered. Management is currently examining the process of distribution from the warehouse and has the business objective of determining the factors that affect warehouse distribution costs. Data that indicate the warehouse distribution costs and the number of orders received over the past 15 months are in the accompanying table. Month Cost_($thousands)

Month	Cost_($thousands)	Orders
1	74.18	4628
2	89.42	5460
3	70.78	4416
4	93.46	5737
5	72.26	4397
6	85.24	5307
7	52.78	3215
8	94.24	5882
9	62.87	3972
10	82.56	5042
11	79.26	4885
12	68.24	4167
13	54.46	3324
14	69.63	4273
15	58.33	3638

Compute the​ Durbin-Watson statistic. At the 0.05 level of​ significance, is there evidence of positive autocorrelation among the​ residuals? D=

Use the given table to find the critical values of the​ Durbin-Watson statistic. dL= dU=

Is there evidence of positive autocorrelation among the​ residuals?

A.No, because Upper D greater than d Subscript Upper U.

B.Yes, because Dless thand Subscript Upper L.

C.​Yes, because D is between d Subscript Upper L and d Subscript Upper U.

D.The test is inconclusive.

. Based on the results of​ (c) and​ (d), is there reason to question the validity of the​ model?

There is (no,a noticeable) pattern in the residual plot in​ (c). Part​ (d) provides (evidence,no evidence)of autocorrelation.​ Therefore, there is (reason, no reason) to question the validity of the model.

What conclusions can you reach concerning the factors that affect distribution​ costs?

A.According to the​ model, the distribution costs are not affected by the number of orders.

B.As the number of orders​ increases, the distribution costs increase.

C.No conclusions can be reached.

D.As the number of orders​ decreases, the distribution costs increase.

Answer 1

H0: there is not positive auto-correlation among the​ residuals

H1: there is positive auto-correlation among the​ residuals

Let the los be alpha = 5%

From the given data