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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern