The residuals for 10 consecutive time periods are given in the following table.
|
Time Period
|
Residual
|
|
1
|
-6
|
|
2
|
-8
|
|
3
|
-3
|
|
4
|
3
|
|
5
|
-6
|
|
6
|
-7
|
|
7
|
7
|
|
8
|
-3
|
|
9
|
-8
|
|
10
|
-4
|
A.) Plot the residuals over time.
What conclusion can you reach about the pattern of the residuals over time?
a.) No linear relationship exists.
b.) An increasing linear relationship exists.
c.) A decreasing linear relationship exists.
B.) Based on (a) what conclusion can you reach about the auto correlation of the residuals?
a.) There appears to be a strong negative autocorrelation among the residuals.
b.) There does not appear to be an autocorrelation among the residuals.
c.) There appears to be a strong positive autocorrelation among the residuals.