Question: e) Use the Breusch-Godfrey test for testing the errors for AR(1) serial correlation. Clearly state the auxillary regression that you must estimate for answering the

e) Use the Breusch-Godfrey test for testing the errors for AR(1) serial correlation. Clearly state the auxillary regression that you must estimate for answering the question, the null and alternative hypotheses, the form and distribution of the test statistic under the null, the calculated sample value and critical value of the test statistic, your decision rule and your conclusion. (8 marks)

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