Econ 203 Hmwk 18

# Econ 203 Hmwk 18 - Graded Homework 18 You have submitted...

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Graded Homework 18 You have submitted this Homework 1 time (including this time). You may submit this Homework a total of 40 times and receive full credit. This homework covers material on autocorrelation in the error term and the Durbin-Watson statistic. Question #1 You were asked to investigate the effect of average temperature of a particular day on profits from icecream sales in a Midwestern town. You are given the data on 15 daily average temperatures and thousands of dollars in icecream profits in the town. Run a simple linear regression of profits from icecream sales on the average daily temperature and answer the following questions. 1. The scatter plot of profit from icecream sales and temperature shows a weak positive relationship. 2. The calculated value of the Durbin-Watson statistic is .954889 = 0.954889 3. From the Durbin-Watson statistic in Excel and given the lower critical value (d L ) and upper critical value (d U ) of 1.08 and 1.36, we can say that there is significant positive autocorrelation. You received a raw score of 100% on this question. Question #2 Look at the example on slides 23-26 (pages 98 and 99) of the course packet. You want to know how the weather affects ticket sales at a ski resort. You have

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