J 1

Using a sample of 62 quarters of sales, you carry out an AR(1) model regression, and produce the following results: Coefficient Standard error Intercept 3.46 0.51 Sales t-1 0.63 0.13 To test for serial correlation of errors, you find that the first order error autocorrelation is 0.13. What is the t- statistic to test it for significance? Hint: note that your regression sample is 1 less than your original data, since you lose one observation to the lag (i.e. there is no previous-quarter data point for the very first quarter in our sample). Please show ALL of the calculations in Excel