The omission of an important independent variable from a time-series regression model can result in the appearance
Question:
yt = β0 + β1x1t + εt
relating profit margin to net revenue per dollar for our savings and loan data. Carry out a Durbin-Watson test on the residuals from this model. What can you infer from the results?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Question Posted: