Question: a) By which method was the model (1) estimated using the information above? Please explain b) Make economic, statistical and econometric interpretations of the

a) By which method was the model (1) estimated using the information above? Please explain b) Make economic, statistical and econometric interpretations of the

a) By which method was the model (1) estimated using the information above? Please explain b) Make economic, statistical and econometric interpretations of the model numbered (1)? Economic commentary: Statistical interpretation: Econometric interpretation: It = a + b Y+ b It-1+ u I = 500 +0.3Y+ 0.10 I t-1 sh (0.5) (0.01) (0.04) Here, AY = 0.34-0.99 Y 1-0.27 AYDI t (5) (-4.99) (-2.5) (1) Let the model estimate be as follows.. AL=1.78 -0.67 1-1 +0.65 AX-1 t (3) (-6) (7) R=0.99 dw= 1.15 h-0.65 n-20 F white = 0.3 F 34 -1.645

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