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Graded Homework 18
You have submitted this Homework 3 times (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 DurbinWatson statistic is
0.954888834
3.
From the DurbinWatson 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 2326 (pages 98 and 99) of the course packet. You
want to know how the weather affects ticket sales at a ski resort. You have
data
on
tickets sold and total snowfall and average temperature over Christmas week for 20
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 Spring '08
 Petry

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