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In the following simple linear regression model, it is suspected that the error term follows the second autoregressive process . Let be the least squares

In the following simple linear regression model, it is suspected that the error term follows the second autoregressive process image text in transcribed.

image text in transcribed

Let image text in transcribed be the least squares residual from this.

1)In this case, write down the estimation equation using image text in transcribed is not true as the dependent variable for performing the Lagrange Multiplier Test for image text in transcribed.

2) 1) As a result of estimating the estimation equation, the image text in transcribed value was 0.564. Present the value of the image text in transcribed test statistic calculated by the number of accurate observations used in the estimation of 9. and the rejection at the 5% significance level in order.

I'll give you a thumbs-up by answering these two questions. Thank you very much.

yt=1+2xt+t,t=1,,14. yt=1+2xt+t,t=1,,14

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