Question: Based on the results obtained from White test, BG test and Ramsey RESET Test, are the errors correlated, heteroscedastic? Is the model misspecified? Comment. Consider

Based on the results obtained from White test, BG test and

Based on the results obtained from White test, BG test and Ramsey RESET Test, are the errors correlated, heteroscedastic? Is the model misspecified? Comment.

Consider the following estimated model. Yt=2436.62+1.287Xt+0.179Yt1t=(1.418)(14.492)(3.015) where Y= inventories (billions of dollars) X= sales (billions of dollars) n=41R2=0.9993d=1.530White=3.685[0.0088]BG=1.669[0.2026]RESET=8.746[0.0054]

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