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Question 2 Estimate the same model by GL3 with the assumption that the error follows an ARU) process. . Print the coefcient table and interpret
Question 2 Estimate the same model by GL3 with the assumption that the error follows an ARU) process. . Print the coefcient table and interpret the result. Do you observe a difference between your GLS and ULS results?" Explain. a What is the estimated coefcient. of the ARU} process? Do you detect any problem? . Follow the lecture noted and compare the predicted interest rate using ULS and GL3 {you need to add at1 to you prediction}. Here you need one graph with the interest rate and the two predictions. Use different. colors and add a legend. Interpret the result
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