Question: (i) In part (i) of Computer Exercise C6 in Chapter 11, you were asked to estimate the accelerator model for inventory investment. Test this equation

(i) In part (i) of Computer Exercise C6 in Chapter 11, you were asked to estimate the accelerator model for inventory investment. Test this equation for AR(1) serial correlation.

(ii) If you find evidence of serial correlation, reestimate the equation by Cochrane-Orcutt and compare the results.

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