The omission of an important independent variable from a time-series regression model can result in the appearance

Question:

The omission of an important independent variable from a time-series regression model can result in the appearance of auto correlated errors. In Example 13.7 we estimated the model
yt = β0 + β1x1t + εt
relating profit margin to net revenue per dollar for our savings and loan data. Carry out a Durbin-Watson test on the residuals from this model. What can you infer from the results?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistics For Business And Economics

ISBN: 9780132745659

8th Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

Question Posted: