Based on the results in Exercise 13.32, answer the following questions in which a lagged dependent variable is added to the above model.
a. Write the model in which a lagged dependent variable is added.
b. Compute the estimated value for serial correlation.
c. Calculate the Durbin’s h statistic with the estimated standard deviation of the estimated coefficient for the lagged dependent variable is 0.0024.
d. Justify your finding in part c.

Data From Exercise 13.32

In determining whether a regression model’s error terms are positively correlated for the model

from its least-square residuals.
a. State the null and alternative hypothesis for the mentioned analysis.
b. Calculate the Durbin-Watson statistic.
c. Determine the decision rule.
d. What can you conclude from this analysis?

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y, = βο + βιXi + £ . 30 Σe = 7587.9154 and t=1 Σ(e-e+1)2 = 8195.2065 We determine 30 t=1