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4. Consider the following estimated equation (tstatistics in parentheses) 1n Ht = 1.12 + 1.141111 Yt + 0.96 In P1 (0.3) (10.7) (1.5) 132 :

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4. Consider the following estimated equation (tstatistics in parentheses) 1n Ht = 1.12 + 1.141111 Yt + 0.96 In P1 (0.3) (10.7) (1.5) 132 : 0.98 11:27 d:0.65 where d is the Durbin Watson statistic. What conclusion can you draw about the residuals of the model? Explain

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