Question: 13.32 In determining whether a regression models error terms are positively correlated for the model yt = b0 + b1x1t + et . We determine

13.32 In determining whether a regression model’s error terms are positively correlated for the model yt = b0 + b1x1t + et .

We determine a 30 t=1 et 2 = 7587.9154 and a

30 t=1 1et-et-122 = 8195.2065 from its least-square residuals.

a. State the null and alternative hypothesis for the mentioned analysis.

b. Calculate the Durbin-Watson statistic.

c. Determine the decision rule.

d. What can you conclude from this analysis?

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