Question: Consider the following AR(1) model: xt =+xt1 +et Generate data from this model. Then estimate the model using ordinary least squares. The estimated that you
Consider the following AR(1) model: xt =+xt1 +et Generate data from this model. Then estimate the model using ordinary least squares. The estimated that you will find will be biased. Write a simulation to study this bias. See if you can find the functional form of the bias via simulation
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