Use the time series data set given to you to answer the following questions: 1. Model...
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Use the time series data set given to you to answer the following questions: 1. Model 1: IM=b+b.lgdp,+ e, a. Estimate the model using the OLS method. b. Check for serial correlation using the DW test at 5% level of significant. c. Run the serial correlation test using the Breuch-Godfrey test d. If there is presence of serial correlation correct the model using either the AR or MA model. e. Test for Heteroskedasticity in model using the ARCH test at 5% level of significant. 2. Model 2: IM=b+bilgdp,+ e, a. Estimate the model below using the OLS b. Conduct Engle-Granger cointegration test on the model. 3. Model 3: IM₂= b.+b.lgdp,++b;exg+ e, a. Run ADF unit root test on the IM, with intercept and trend. b. Conduct the Johansen cointegration test with specification (3) on the model. c. Interpret the result of the Johansen normalize cointegrating equation. d. Is there multicollinearity among the variables? Use the time series data set given to you to answer the following questions: 1. Model 1: IM=b+b.lgdp,+ e, a. Estimate the model using the OLS method. b. Check for serial correlation using the DW test at 5% level of significant. c. Run the serial correlation test using the Breuch-Godfrey test d. If there is presence of serial correlation correct the model using either the AR or MA model. e. Test for Heteroskedasticity in model using the ARCH test at 5% level of significant. 2. Model 2: IM=b+bilgdp,+ e, a. Estimate the model below using the OLS b. Conduct Engle-Granger cointegration test on the model. 3. Model 3: IM₂= b.+b.lgdp,++b;exg+ e, a. Run ADF unit root test on the IM, with intercept and trend. b. Conduct the Johansen cointegration test with specification (3) on the model. c. Interpret the result of the Johansen normalize cointegrating equation. d. Is there multicollinearity among the variables?
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Model 1 a Estimate the model using the OLS method The OLS method can be used to estimate the paramet... View the full answer
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