TABLE 7 Autocorrelations of the Residuals from Estimating the Regression AGPM, = 0.0006 - 0.3330, AGPM,_1 + &, 1Q:1992-4Q:2001 (40 Observations) Lag Autocorrelation -0.1106 2 -0.5981 3 -0.1525 0.8496 -0.1099 Table 8 shows the output from a regression on changes in the GPM for Home Depot, where we have changed the specification of the AR regression. TABLE 8 Change in Gross Profit Margin for Home Depot 1Q:1992-4Q:2001 Regression Statistics R-squared 0.9155 Standard error 0.0057 Observations 40 Durbin-Watson 2.6464 Coefficient Standard Error *-Statistic Intercept -0.0001 0.0009 -0.0610 AGPM;-1 -0.0608 0.0687 -0.8850 AGPM+ 4 0.8720 0.0678 12.8683