A beverage company specializing in sales of champagne reports four years of quarterly sales as follows (in millions of $):

Transcribed Image Text:

Quarter Sales ($M) 12345678 12 2 41 15 48 25 55 23 69 9 51 10 80 11 54 12 13 23 87 64 14 94 15 62 16 108 The regression equation is Predicted Sales = 14.15 +4.87 Quarter. a) Find the residuals. b) Plot the residuals against Quarter. Comment. c) Compute the Durbin-Watson statistic. d) At a = 0.05, what are the values of d and d? e) Is there evidence of positive autocorrelation? Explain. f) Is there evidence of negative autocorrelation? Explain.