Problem

The residuals for 10 consecutive time periods are as follows: Time PeriodResidualTime...

The residuals for 10 consecutive time periods are as follows:

Time Period

Residual

Time Period

Residual

1

–5

6

+1

2

–4

7

+2

3

–3

8

+3

4

–2

9

+4

5

–1

10

+5

a. plot the residuals over time. What conclusion can you reach about the pattern of the residuals over time?


b. Based on (a), what conclusion can you reach about the autocorrelation of the residuals?

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