In models (a) and (b), conduct t ratio tests for the null H0 1, 0 versus H1 1 0, and H1 1 0, and H1 1 0 Choose your own significance level What are your conclusions Is the stock market a leading indicator ...

Refer to Tables 2 and 3 Model 3a From Table II Appendix B we obtain the 5 critical value for d f 1 given that the number of observations is quite larg ...

In models (a) and (b), conduct t-ratio tests for the null H0: 1, =0 versus H1: 1

Question:

In models (a) and (b), conduct t-ratio tests for the null H0: β1, =0 versus H1: β1 ≠ 0, and H1: β1 > 0, and H1: β1 < 0. Choose your own significance level. What are your conclusions? Is the stock market a leading indicator?