Suppose we consider the following model: Xt2 = b0 + b1X2t-1 + ut The estimation of the model provided the following: Xt2 = 0.00043 + 0.23036X2t-1 t = (7.71)              (4.97) R2 = 0.0531 d = 1.9933 where Xt2 is as defined before. Given a p value for b1 of .0001 what do conclude about the significance of the model?

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.