Question

Jim Royo, manager of Billings Building Supply (BBS), wants to develop a model to forecast BBS's monthly sales (in $1,000's). He selects the dollar value of residential building permits (in $10,000) as the predictor variable. An analysis of the data yielded the following tables. Intercept Coefficients 222.1456 6.152885 Standard Error Statistic p-value 7 4.765 2.971252 0.007284 1 .895423 3.24618 0.003866 df SSMS p-value Regression 1259643.9 A B Residual 38492791.3 Total 39752435,2 Using a = 0.05, the critical value of the Durbin-Watson statistic, dl.is 01.25 0 1.43 O 1.44 O 1.24

Answer 1

sample size n=40 and number of independent variable p=1

for n=40, p=1 and alpha=0.05 level of significance, crtiical value DL =1.44