In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the...
In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the coefficient on the independent variable is positive and significant at the 0.05 level. You are concerned, however, that the t−statistic on the independent variable may be inflated because of serial correlation between the error terms. Therefore, you examine the Durbin-Watson statistic, which is 1.8953 for this regression.
(3.1) Based on the value of the Durbin-Watson statistic, what can you say about the serial correlation between the regression residuals? Are they positively correlated, negatively correlated, or not correlated at all? (3)
Homework Answers
Since the value of the Durbin-watson test statistic i.e. 1.8953 is less than 2 it means that the regression residuals are positively correlated.
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In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the...
In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the coefficient on the independent variable is positive and significant at the 0.0...
In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the coefficient on the independent variable is positive and significant at the 0.05 level. You are concerned, however, that the t−statistic on the independent variable may be inflated because of serial correlation between the error terms. Therefore, you examine the Durbin-Watson statistic, which is 1.8953 for this regression. (3.1) Based on the value of the Durbin-Watson statistic, what can you say about...
In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the...
In estimating a regression based on monthly observations from January 1987 to December 2002 inclusive, you find that the coefficient on the independent variable is positive and significant at the 0.05 level. You are concerned, however, that the t−statistic on the independent variable may be inflated because of serial correlation between the error terms. Therefore, you examine the Durbin-Watson statistic, which is 1.8953 for this regression. Perform a statistical test to determine if serial correlation is present. Assume that the...
Pick a minimum of 20 observations on any subject. This will include a dependent variable plus...
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Consider a multiple regression model of the dependent variable y on independent variables x1, X2, X3, and x4: Using data with n 60 observations for each of the variables, a student obtains the follow...
Consider a multiple regression model of the dependent variable y on independent variables x1, X2, X3, and x4: Using data with n 60 observations for each of the variables, a student obtains the following estimated regression equation for the model given: y0.35 0.58x1 + 0.45x2-0.25x3 - 0.10x4 He would like to conduct significance tests for a multiple regression relationship. He uses the F test to determine whether a significant relationship exists between the dependent variable and He uses the t...
4. Testing for significance Aa Aa Consider a multiple regression model of the dependent variable y on independent variables x1, x2, X3, and x4: Using data with n = 60 observations for each of the var...
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Consider a multiple regression model of the dependent variable y on independent variables x1, X2, X3, and x4: Using data with n 60 observations for each of the variables, a student obtains the following estimated regression equation for the model given: y0.35 0.58x1 + 0.45x2-0.25x3 - 0.10x4 He would like to conduct significance tests for a multiple regression relationship. He uses the F test to determine whether a significant relationship exists between the dependent variable and He uses the t...
4. Testing for significance Aa Aa Consider a multiple regression model of the dependent variable y on independent variables x1, x2, X3, and x4: Using data with n = 60 observations for each of the variables, a student obtains the following estimated regression equation for the model given: 0.04 + 0.28X1 + 0.84X2-0.06x3 + 0.14x4 y She would like to conduct significance tests for a multiple regression relationship. She uses the F test to determine whether a significant relationship exists...
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