Explanation:
To determine if the time series is white noise, we compare the calculated Q-statistics with the critical chi-square value at 95% confidence level with 24 degrees of freedom, which is given as 36.41.
Both test statistics are less than the critical value of 36.41. Therefore, we fail to reject the null hypothesis that the series is white noise at the 95% confidence level.
Conclusion: With 95% confidence, we fail to reject the null hypothesis that the series is white noise.
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For a certain time series, you have produced a correlogram with an autocorrelation function that includes twenty four monthly observations; . Your calculated Box-Pierce Q-statistic is 19.50 and your calculated Ljung-Box Q-statistic is 27.90. You want to determine if the series is white noise. Which is your best conclusion (given CHISQ.INV(0.95, 24) = 36.41)?
A
With 95% confidence, you accept the series as white noise (more accurately, you fail to reject the null).
B
With 95% confidence, you accept the series as partial white noise (due to Box-Pierce) but reject the null (due to Ljung-Box).
C
With 95% confidence, you reject both null hypotheses and conclude the series is not white noise.
D
With 95% confidence, you reject both null hypotheses but conclude the series is white noise.
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