The regression specified for private investment is I= a1 + a2 Y + az CRD +...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The regression specified for private investment is I= a1 + a2 Y + az CRD + u. The results from estimating the regression are presented below. The sample covers the annual series spanning from 1981-2018. Î, = 2.4 + 0.75 Y, +0.45 CRD, (1.02) (0.26) (0.12) R2= 0.78 D-W-d= 1.15 where I, Y and represent real private investment, real GDP and real credits respectively. III.a) Suppose you would like to perform the test for the first order autocorrelation using the LM type test technique. Define the auxiliary regression to this end. Also suppose you found R-squared from the auxiliary regression to be 0.62, perform the LM test for the first order autocorrelation (15 point). The regression specified for private investment is I= a1 + a2 Y + az CRD + u. The results from estimating the regression are presented below. The sample covers the annual series spanning from 1981-2018. Î, = 2.4 + 0.75 Y, +0.45 CRD, (1.02) (0.26) (0.12) R2= 0.78 D-W-d= 1.15 where I, Y and represent real private investment, real GDP and real credits respectively. III.a) Suppose you would like to perform the test for the first order autocorrelation using the LM type test technique. Define the auxiliary regression to this end. Also suppose you found R-squared from the auxiliary regression to be 0.62, perform the LM test for the first order autocorrelation (15 point).
Expert Answer:
Answer rating: 100% (QA)
proof provided below Auxilary regression is the regression run with ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these mathematics questions
-
Suppose you would like to take an SRS of size n from a list of N units, but do not know the population size N in advance. Consider the following procedure: a. Set S 0 = {1, 2. . . n}, so that the...
-
Suppose you would like to urgently deliver 40 terabytes data from Boston to Los Angeles. You have available a 100 Mbps dedicated link for data transfer. Would you prefer to transmit the data via this...
-
Is there a hypothesis you would like to see tested? Comment on why it has not been tested, and briefly describe how you would get the data for the test.
-
Sally works as a welder at Heavy Iron Works Company. She is the only female welder in a shop with ten male welders. Teddy is the manager of that shop with Sally and the ten male welders. Sally is...
-
For a 30 wt% Zn-70 wt% Cu alloy, make schematic sketches of the microstructure that would be observed for conditions of very slow cooling at the following temperatures: 1100C (2010F), 950C (1740F),...
-
Consider the following information on Stocks I and II: The market risk premium is 7.5 percent, and the risk-free rate is 4 percent. Which stock has the most systematic risk? Which one has the most...
-
Describe the importance of information management planning.
-
Laya Corporation produced 200,000 watches that it sold for $16 each during 2012. The company determined that fixed manufacturing cost per unit was $7 per watch. The company reported an $800,000 gross...
-
Shawn's Tutoring adjusted trial balance follows.\ SHAWN'S TUTORING\ Adjusted Trial Balance\ December 31, 2017\ \\\\table[[Accounts,Debits,Gredits],[ cosh ,1,650,],[Accounts Receivable,1,160,],[Ollice...
-
Comparative Statements of Retained Earnings for Renn Dever Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. No preferred stock or potential common...
-
What is the height of D ? B C I (H) D A I EF K J
-
A professor wants to test the impact of a training session attended by 20 students. He assessed the performance before the session based on the given learning objectives as well as after the session...
-
Sticking with team sports, what examples can you think of in which high or low cohesiveness affected performance? And how much more or less do you think cohesiveness matters depending on the sport:...
-
In Problem 13.5, you used the GPA to predict the overall satisfaction of university students (stored in UPFBE ). Evaluate whether the assumptions of regression have been seriously violated. Problem...
-
It is 22 April 2015 and you are completing your taxes, albeit late, for 2014. You purchased your house for $600,000 on 1 January 2010 and financed 80% at 5.0% for 30 years using a constant payment...
-
Find the frequency response of the given system. \(\frac{1}{3} \dot{x}+2 x=2.6 \sin 2 t\)
-
A company's financial reports are used for a variety of reasons, including determining how the company is doing in the financial market. You decide to evaluate the effects of economic and market...
-
Orange juice producers are dismayed and puzzled. An economist told them that the reason the demand for orange juice fell is that a new technology allow tomato producers to pick ripe tomatoes more...
-
Earnings per share can affect market prices of ordinary shares. Can market prices affect earnings per share? Explain.
-
Wadkins Company, a machinery dealer, leased a machine to Aoki Corporation on January 1, 2011. The lease is for an 8-year period and requires equal annual payments of 38,514,000 at the beginning of...
-
Using the information in E20-20, prepare a worksheet inserting January 1, 2010, balances, showing December 31, 2010, balances, and the journal entry recording postretirement benefit expense. In...
-
Identify something you own, perhaps even something you still use regularly. a. Give a list of at least six reasons why you might consider replacing the identified item. b. Identify at least two...
-
A company owns a 6-year-old gear hobber that has a book value of \($60,000.\) The present market value of the hobber is \($80,000.Anew\) gear hobber can be purchased for \($450,000.\) Using an...
-
Ten reasons why companies use equipment long after replacements would be justified economically. In many cases, these reasons do not apply just to companies; rather, they apply to us as individuals....
Study smarter with the SolutionInn App