Examine whether the following statements are true or false. Give an explanation.

(i) Consider the model yt=+xt+ut ut=ut1+et01 et are IN (0,2). By regressing yt on xt, it is possible to get more efficient estimates of than by regressing yt on xt. (j) The Durbin-Watson test is a useless test because it is inapplicable in almost every situation that we encounter in practice. (i) Consider the model yt=+xt+ut ut=ut1+et01 et are IN (0,2). By regressing yt on xt, it is possible to get more efficient estimates of than by regressing yt on xt. (j) The Durbin-Watson test is a useless test because it is inapplicable in almost every situation that we encounter in practice