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

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?

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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... View full answer

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