Question 2 - Specification Testing [Source: Gujarati and Porter (2010, pages 237-39), and Ramsey (1969)]: Consider the following estimated regression equation, Y^i=^1+^2Xi=136.1649+0.2082X2,it^=R2=0.9693,andn=48. Next consider Y^it^R2=^1+^2Xi+^3(Y^i)2+^4(Y^i)3=39.7720+0.1471Xi+0.0000(Y^i)2+0.0000(Y^i)3=(2.6306)(11.0550)(0.1458)=0.9959,andn=48. Answer These Questions: (a) Using the above results, test to see if Equation (1) is properly specified. SHOW ALL WORK. [Hint: Use the test due to Ramsey (1969).] [16 marks] (b) What do your test results indicate about Equation (1)? [4 marks ] Question 2 - Specification Testing [Source: Gujarati and Porter (2010, pages 237-39), and Ramsey (1969)]: Consider the following estimated regression equation, Y^i=^1+^2Xi=136.1649+0.2082X2,it^=R2=0.9693,andn=48. Next consider Y^it^R2=^1+^2Xi+^3(Y^i)2+^4(Y^i)3=39.7720+0.1471Xi+0.0000(Y^i)2+0.0000(Y^i)3=(2.6306)(11.0550)(0.1458)=0.9959,andn=48. Answer These Questions: (a) Using the above results, test to see if Equation (1) is properly specified. SHOW ALL WORK. [Hint: Use the test due to Ramsey (1969).] [16 marks] (b) What do your test results indicate about Equation (1)? [4 marks ]