In Example 10.6, we estimated a variant on Fair's model for predicting presidential election outcomes in the
Question:
(i) What argument can be made for the error term in this equation being serially uncorrelated? (How often do presidential elections take place?)
(ii) When the OLS residuals from (10.23) are regressed on the lagged residuals, we obtain = -.068 and se() = .240. What do you conclude about serial correlation in the up?
(iii) Does the small sample size in this application worry you in testing for serial correlation?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
Question Posted: