Recall from Section 9.5 that switching the order of a data set will not change its coefficient estimates. A revised order will change the Durbin€“Watson statistic, however. To see both these points, run regressions (HS = β₀+ β₁P + ε) and compare the coefficient estimates and DW statistics for this data set:

In the following three orders (in terms of year):

a. 1, 2, 3, 4, 5

b. 5, 4, 3, 2, 1

c. 2, 4, 3, 5, 1

Transcribed Image Text:

Housing Starts Population Year 1 9090 8942 9755 10327 2200 2222 2244 2289 2 4 10513 2290