file Car Data xlsx. The definition of the variables of interest is presented in the table bele USD Kms Driven The distance completed by the ear in kilometers Defines the number of owners the car has prevenly had Consider the following model: 1. Estimate the parameters of this model and write down the equation. 2. Interpret the parameters estimated in your estimated equation 3. Are the coefficients statistically significant? *Hint: Conduct proper hypothesis testing 4. Write down the null and the alternative hypothesis to test the homoscedastic assumption on linear regression model. 5. Write the auxiliary regression equation for the White test to find out if the emo homoscedastic 6. Conduct White test to test the hypothesis stated in part 4, 7. What are the consequences of heteroseedasticity if established? 8. What are the possible remedies if heteroscedasticity if established? 9. Write down the null and the alternative hypothesis to test the absence of first order assumption of the classical linear regression model. 10. Test the hypothesis in part 9 using Durbin Watson test. What do you conclude? Note: (DLower 1.797 and DUpper-1.824) 11. What is the limitation for Durbin Watson test for autocorrelation? 12. Write the regression equation that Breusch-Godfrey test use to find out if the errors are 13. Conduct Breusch-Godfrey test using excel and test the hypothesis stated in part 9 above 14. What are the consequences of autocorrelation if established? (1 15. If autocorrelation is established, how might you correct for this violation of OS assump file Car Data xlsx. The definition of the variables of interest is presented in the table bele USD Kms Driven The distance completed by the ear in kilometers Defines the number of owners the car has prevenly had Consider the following model: 1. Estimate the parameters of this model and write down the equation. 2. Interpret the parameters estimated in your estimated equation 3. Are the coefficients statistically significant? *Hint: Conduct proper hypothesis testing 4. Write down the null and the alternative hypothesis to test the homoscedastic assumption on linear regression model. 5. Write the auxiliary regression equation for the White test to find out if the emo homoscedastic 6. Conduct White test to test the hypothesis stated in part 4, 7. What are the consequences of heteroseedasticity if established? 8. What are the possible remedies if heteroscedasticity if established? 9. Write down the null and the alternative hypothesis to test the absence of first order assumption of the classical linear regression model. 10. Test the hypothesis in part 9 using Durbin Watson test. What do you conclude? Note: (DLower 1.797 and DUpper-1.824) 11. What is the limitation for Durbin Watson test for autocorrelation? 12. Write the regression equation that Breusch-Godfrey test use to find out if the errors are 13. Conduct Breusch-Godfrey test using excel and test the hypothesis stated in part 9 above 14. What are the consequences of autocorrelation if established? (1 15. If autocorrelation is established, how might you correct for this violation of OS assump
