(Situation O) Using Data from the Post-Korean War Period, an Economist

question 9

Multiple Choice

(Situation O) Using data from the post-Korean war period, an economist modeled annual consumption, $y _ { t }$ as a function of total labor income, $\mathrm { x } _ { 1 } \mathrm { t }$ , and total property income, $\mathrm { x } _ { 2 } \mathrm { t }$ , with the following results. Assume data for $\mathrm { n } = 40 \mathrm { years }$ were used in the analysis.
$$\hat { y } _ { t } = 7.81 + 0.91 x _ { 1 t } + 0.57 x _ { 2 t } \quad s = 1.29 \quad \text { Durbin-Watson } d = 2.09$$
-For the situation above, set up the null and alternative hypotheses for testing for the presence of autocorrelation of residuals.

• A) \(\mathrm { H } _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = 0\)
• \(\mathrm { H } _ { \mathrm { a } }\) : At least one \(\beta \neq 0\)
• B) \(\mathrm { H } _ { 0 }\) : No first-order autocorrelation
• \(\mathrm { H } _ { \mathrm { a } }\) : Negative first-order autocorrelation
• C) \(\mathrm { H } _ { 0 }\) : No first-order autocorrelation
• \(\mathrm { H } _ { \mathrm { a } }\) : Positive or Negative first-order autocorrelation
• D) \(\mathrm { H } _ { 0 }\) : No first-order autocorrelation
• \(\mathrm { H } _ { \mathrm { a } }\) : Positive first-order autocorrelation

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Definitions:

Inner Layer

The deeper or internal part of something, often used in a metaphorical sense to describe the core aspects of concepts or objects.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, giving rise to the lining of the digestive and respiratory systems.

Ectoderm

The outermost layer of cells in the developing embryo, giving rise to the nervous system and skin.

Blastocyst Differentiation

The process during early embryonic development where a blastocyst forms distinct cell layers that will develop into various organs and tissues.