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4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?

4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?
Transcribed Image Text:4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?
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