Question: [AR Restrictions] According to (19.20), the AR model for serial correlation places nonlinear restrictions on the coefficients of E[y t |y t-1 ]. Describe a

[AR Restrictions] According to (19.20), the AR model for serial correlation places nonlinear restrictions on the coefficients of E[y_t|y_t-1]. Describe a test of these restrictions. Suggest some alternative hypotheses this test possesses power to detect.

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