Given the following regression model y = B, + B,x, +u, Where N = 60 Ut P1ut-1 + Et

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 4E
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Time Series, Hypothesis testing and Auto Correlation
Given the following regression model
y = B, + B,x, +u,
Where N = 60
Ut
= Piut-1 + Et
Transcribed Image Text:Time Series, Hypothesis testing and Auto Correlation Given the following regression model y = B, + B,x, +u, Where N = 60 Ut = Piut-1 + Et
Suppose you estimated the following regression and obtain results as outlined below.
Standard errors in parentheses.
A y, = 2.4 + 0.926y,-1 +u,
(0.224) (0.043)
Test the hypothesis that y, has a unit root vs the alternative that it does not at the 5%
level of significance.
Transcribed Image Text:Suppose you estimated the following regression and obtain results as outlined below. Standard errors in parentheses. A y, = 2.4 + 0.926y,-1 +u, (0.224) (0.043) Test the hypothesis that y, has a unit root vs the alternative that it does not at the 5% level of significance.
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