The following regression model shows the cash balance for a household which based on the expenditures on

Question:

The following regression model shows the cash balance for a household which based on the expenditures on food, the expenditures on entertainments and the lagged cash balance for the past 30 months.

where
ŷ = Cash balance
x₁= Expenditures on food
x₂ = Expenditures on entertainments

a. Estimate the autocorrelation parameter.

b. What is autocorrelation?

c. Test at the 10% level the null hypothesis that, all else being equal, the model’s error terms are autocorrelated.

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Statistics For Business And Economics

ISBN: 9781292315034

9th Global Edition

Authors: Paul Newbold, William Carlson, Betty Thorne

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Question Posted: Nov 17, 2022 02:06 AM

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The following regression model shows the cash balance for a household which based on the expenditures on

Question:

ŷt = 1.6027 R² = 0.9227, = 0.1024x10.6869x2+ + 0.5284y+-1 (0.3427) (0.3678) d 1.8624 and sc = (1.2404) = 0.1228

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Statistics For Business And Economics

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