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Could you answer from f-I (f) Plot the residuals of the model and comment on any pattern. (Gretl: in your regression output window, select the

Could you answer from f-I

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(f) Plot the residuals of the model and comment on any pattern. (Gretl: in your regression output window, select the menu Graph 9Residaal plot 9Against Time 7'0k.) [2 marks] I (g) Add a one lag of inf and def to the equation in part (a) and re-estimate your model and report the result. Are the coefcients for the two lag variables individually signicant at the 5% level? In Gretl: Model 9ordinary least squares 9A dialog box will appear. Choose the \"tb3 \" to the dependent variables box and \"in \" and \"def\" as regressors. From the left bottom corner select 9lags 7'add 1 lag for \"inf\" and \"def\" and then click -)ok.) [4 marks] (h) Conduct the second order autocorrelation test for the model in part (c) at the 5% significance level. Attach your Gretl results. Clearly states all steps in your test; Null and alternative hypotheses, the auxiliary regression and the test statistic, critical value, your decision and the conclusion. (Gretl: Tests 9Autocorrelation 9Make lags order for test =2 -)Ok.) [6 marks] (i) Re-estimate your model with Robust standard errors and provide your output. Compare your results With the output in part (c). Comment. (Model 9OLS 9 Choose the \"tbS \" to the dependent variables box and \"inf" and \"def\" as regressors. From the left bottom corner check the box \"Robust standard errors \". ) [2 marks] - .p

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