The team meeting will be held in 3 days from the date of the assignment and because of the limitation oftime 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 + utwhere ut follows a white noise process. What is the condition we need to impose on p1 in orderfor the series yt to be weakly stationary? Why?(d) Consider the following change in the time series model: y; = Bo + B1x1-1+ B2xt-2 + uwhere y, is some outcome variable of interest, and x-1 and x-2 are strictly exogenousexplanatory variables. How would you test for the presence of serial correlation in the residualuz?(e) Briefly explain how you would carry out econometric analysis of the model in (d) if u, is found tobe stationary, but positively serially correlated.

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Answered: The team meeting will be held in 3 days…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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