A market researcher is interested in the average amount of money per year spent by students on entertainment. From 30 years of annual data, the following regression was estimated by least squares:

where
yt = expenditure per student, in dollars, on entertainment
xt = disposable income per student, in dollars, after payment of tuition, fees, and room and board The numbers below the coefficients are the coefficient standard errors.
a. Find a 95% confidence interval for the coefficient on xt in the population regression.
b. What would be the expected impact over time of a $1 increase in disposable income per student on entertainment expenditure?
c. Test the null hypothesis of no autocorrelation in the errors against the alternative of positive autocorrelation.

Transcribed Image Text:

у, = 40.93 + 0.253x + 0.5461,-1 (0.106) d = 1.86 (0.134)