# The following model is estimated: Yi = 0.674 + 0.996X1t + 0.136X2t, R2 = 0.341; SER = 0.1993; d = 2.403; T = 60 (0.311) (0.442) (0.

a. The following model is estimated:

Yi = 0.674 + 0.996X1t + 0.136X2t, R2 = 0.341; SER = 0.1993; d = 2.403; T = 60

(0.311)   (0.442)        (0.097)

The estimated residuals, ^ut, are collected from this model and the value preceding the first observation of the sample is set equal to zero. Using this residual series, the following auxiliary regression is estimated over the full sample of 60 observations:

^ut = 0.013+0.034X1t+0.021X2t−0.032 ^ut−1+ηt, R2 = 0.09, SER = 0.0112, d = 1.983, T = 60

(0.062) (0.036)    (0.035)     (0.012)

Use the Breusch-Godfrey test to determine whether there is evidence of statistically significant first-order autocorrelation at the 5% level.

b. The estimated residuals, ^ut, are collected from the model estimated in Question (a) and the two values preceding the first observation of the sample are set equal to zero. Using this residual series, the following auxiliary regression is estimated over the full sample of 60 observations:

^ut = 0.011 + 0.025X1t + 0.017X2t − 0.03 ^ut−1 + 0.004  ^ut−2 + ηt,

(0.062)   (0.036)       (0.035)       (0.035)          (0.01)

R2 =0.096, SER=0.0113, d=1.897, T =60

Use the Breusch-Godfrey test to determine whether there is evidence of statistically

significant second-order autocorrelation at the 5% level.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.