Figure 4-1 gives you the normal probability plot for Example 4.4. a. From this figure, can you

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Figure 4-1 gives you the normal probability plot for Example 4.4.
a. From this figure, can you tell if the error term in Eq. (4.62) follows the normal distribution? Why or why not?
b. Is the observed Anderson-Darling A1value of 0.468 statistically significant? If it is, what does that mean? If it is not, what conclusion do you draw?
c. From the given data, can you identify the mean and variance of the error term?
Figure 4-1 gives you the normal probability plot for Example

Normal probability plot for Example 4.4 AD = Anderson-Darling statistic

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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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