Refer to Exercise 13.37 where a lagged variable, yield, is added to the model and suppose the estimated standard deviation of the estimated coefficient for the lagged dependent variable is 0.0639.
Use Durbin’s h statistic to construct a hypothesis test with the alternative hypothesis is ρ > 0 at 5% significance level.

Data From Exercise 13.37

A farmer’s yearly yield is based on the amount of rainfall received in a year and average temperature during the year. A series of observations over the past 15 years was obtained, and the model yielded the following results:

Does it show any positive autocorrelation in the error terms at 5% significance level?

Transcribed Image Text:

Yield, = 0.767 + 0.3543 X rainfall,+ 0.7294 × tempt R² = 0.873, d = 0.726