Observations of variables y, x1, and x2 were taken over 100 consecutive time periods.

a. Conduct a regression analysis of these data.

b. Plot the residuals versus the time periods. Describe the graph.

c. Perform the Durbin-Watson test. Is there evidence of autocorrelation? Use α = .10.

d. If autocorrelation was detected in Part c, propose an alternative regression model to remedy the problem. Use the computer to generate the statistics associated with this model.

e. Redo Parts b and c. Compare the two models.