Question

Upon reviewing the results of a multiple regression involving 30 observations on time series data the Econometric Society suspected that the error terms might be related to each other. Alarmed by the prospects they quickly ran another regression yielding the following results:

yi = 1631.5 + 0.786x1i + 16.188x2i - 0.211x3i n=29

(41.7) (2.509) (2.131) (1.979); D.W. = 1.89

Do the hypothesis test at a 2% level to see if the econometric society should have been alarmed by the results. - State hypotheses, calculated and critical values for the test statistic, and conclusion.

Answer 1

answered by: anonymous