The questions are correlated to the ones that I have added before it's a set of 4 qstns n estimating the regression in problem #2 you are also4.concened that the t-statistics may be inflated because of the presence ofconditional heteroscedasticity.You conduct a regression of the squared residuals against the dummy variablesX1, X2, and X3 and find that for the squared residuals regression:0.414Multiple R0.171810.160R SquareAdjusted R Square92 3760SEEa.Conduct a test at the level to see if conditional heteroskedasticity is presentb.in view of your answer for a), what needs to be done? A In estimating the regression in the previous problem (#2), youare concemeu that the t-statistics may be inflated because of serial correlation.You compute the DW statistic at 0.724 for the regressionBased on the DW, what can you say about serial correlation between theresiduals? Are they positively or negatively correlated? Or not correlated?b.Compute the sample correlation between the regression residuals from oneperiod and those from the previous period,C.Perform a statistical test at the level to see if there is serial correlation, Ifyou are using the table in the textbook, assume that the critical values of theDW statistic for 214 observations are about 0.11 higher than the criticalvalues for 100 observations.

Answered: n estimating the regression in problem…

n estimating the regression in problem #2 you are also 4. concemed that the tstatistics may be inflated because of the presence of conditional heteroscedasticity.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter1: Equations And Graphs

Section: Chapter Questions

Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...

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Question

The questions are correlated to the ones that I have added before it's a set of 4 qstns

n estimating the regression in problem #2 you are also
4.
concened that the t-statistics may be inflated because of the presence of
conditional heteroscedasticity.
You conduct a regression of the squared residuals against the dummy variables
X1, X2, and X3 and find that for the squared residuals regression:
0.414
Multiple R
0.171
81
0.160
R Square
Adjusted R Square
92 37
60
SEE
a.
Conduct a test at the level to see if conditional heteroskedasticity is present
b.
in view of your answer for a), what needs to be done?

A In estimating the regression in the previous problem (#2), you
are concemeu that the t-statistics may be inflated because of serial correlation.
You compute the DW statistic at 0.724 for the regression
Based on the DW, what can you say about serial correlation between the
residuals? Are they positively or negatively correlated? Or not correlated?
b.
Compute the sample correlation between the regression residuals from one
period and those from the previous period,
C.
Perform a statistical test at the level to see if there is serial correlation, If
you are using the table in the textbook, assume that the critical values of the
DW statistic for 214 observations are about 0.11 higher than the critical
values for 100 observations.

Definition Definition Relationship between two independent variables. A correlation tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

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