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Based on 25 time-ordered observations from a simple regression model, we have determined the Durbin-Watson statistic, d = 1.39. At α = .05, test to determine if there is any evidence of positive autocorrelation. State your conclusions.
Terms of Trade
The ratio at which a country's exports exchange for its imports, affecting the economy's health.
Heckscher-Ohlin Theorem
An economic theory stating that countries export what they can most efficiently and plentifully produce, based on their factor endowments of labor, land, and capital.
Trade Flows
The movement of goods and services between countries or regions, highlighting the patterns and volumes of trade.
Factor Endowments
The quantity and quality of labor, land, and capital that a country possesses, which can affect its comparative advantage in trade.
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