Question: 1. Consider the following multiple regression model with autocorrelated error terms: Yt = Bo+ BIXt,1+ B2Xt.2+ ... + Bp-1Xt.p-1+ et, Et = pet-1 + Ut.

1. Consider the following multiple regression model with autocorrelated error terms: Yt = Bo+ BIXt,1+ B2Xt.2+ ... + Bp-1Xt.p-1+ et, Et = pet-1 + Ut. where ut's are independent N(0, o?) disturbance terms and |p| 0. (c) Let p-1=3, write down the Cochrane-Orcutt transformed model.(d) Now, consider a third-order autoregressive process for the errors: Yo = Bot BIX+ et, Et = PICt-1 + Pet-2 + Pact-3 + Ut, for this model, write the Cochrane-Orcutt transformed variables Y, and X. Also, specify what do p1, p2 and p3 represent

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