An economist is interested in forecasting future lumber demand. She uses annual time series data that spans the period from 1960 to 2019 to generate a regression equation using only time and prices of...

9

Extracted text: An economist is interested in forecasting future lumber demand. She uses annual time series data that spans the period from 1960 to 2019 to generate a regression equation using only time and prices of substitute products in the construction sector as the independent variables. She is concerned that positive autocorrelation may be present in the data and computes the Durbin-Watson statistic to be 1.60. Using the 5% significance level, what does the test indicate? O The presence of positive autocorrelation O No evidence of autocorrelation Test is inconclusive. The presence of negative autocorrelation