Refer to Example 7.3 relating expenditure on imports (Y) to personal disposable income (X). Now consider the following models:

a. What do these results suggest about the nature of autocorrelation in this example?
b. How would you interpret the time and lagged Y terms in Model 3? The estimated coefficients in all the models, except for the X and Time coefficients in Model 3, were statistically significant at the 5% or lower level of significance.

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Model 1 Model 2 Model 3 Intercept -136.16 22.69 12.18 0.2082 0.2975 0.0382 3.045 0.9659 0.994 1.611 ime -18.525 Y (-1) 0.969 0.216 0.984 0.341 4