The team meeting will be held in 3 days from the date of the assignment and because of the limitation of time the Chief economist has given you the following guidelines: (a) Is there a trend in total accidents? (b) Is there seasonality in total accidents? (c) Consider the following change in the time series model: y; = P1Yt-1+ Uz where ut follows a white noise process. What is the condition we need to impose on ø1 in order for the series yt to be weakly stationary? Why? P.T.O (d) Consider the following change in the time series model: y = Bo + B1xt-1 + B2xt-2 + Uz where y, is some outcome variable of interest, and x,-1 and x,-2 are strictly exogenous explanatory variables. How would you test for the presence of serial correlation in the residual u,? (e) Briefly explain how you would carry out econometric analysis of the model in (d) if u̟ is found to be stationary, but positively serially correlated.
The team meeting will be held in 3 days from the date of the assignment and because of the limitation of time the Chief economist has given you the following guidelines: (a) Is there a trend in total accidents? (b) Is there seasonality in total accidents? (c) Consider the following change in the time series model: y; = P1Yt-1+ Uz where ut follows a white noise process. What is the condition we need to impose on ø1 in order for the series yt to be weakly stationary? Why? P.T.O (d) Consider the following change in the time series model: y = Bo + B1xt-1 + B2xt-2 + Uz where y, is some outcome variable of interest, and x,-1 and x,-2 are strictly exogenous explanatory variables. How would you test for the presence of serial correlation in the residual u,? (e) Briefly explain how you would carry out econometric analysis of the model in (d) if u̟ is found to be stationary, but positively serially correlated.
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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