Suppose You Are Interested in Explaining Variation in Quarterly Net

question 9

Essay

Suppose you are interested in explaining variation in quarterly Net Exports (billions)and that you estimate the regression function (standard errors in parentheses) $\begin{array} { l } \text { Net } \widehat {Exp}orts_ { t } =& - 207.66 +& 0.48 \text { Exchange } \text {Rate }_{t } +& 1.39 \text { Personal Income } _ { t } \\& (42.31) &(0.15) &\text { (0.43) } \\n = 116 \\R ^ { 2 } = .9528 \\\end{array}$
a)How many years' worth of data do you have? How can you tell? Explain.
b)Do you suspect that autocorrelation might be present in this model? If so,what type? Why? Explain.
c)How would you use the Regression test for AR(1)to determine whether autocorrelation is present? Explain.
d)Suppose you know that the autocorrelation follows an AR(1)process.How would you use the Prais-Winsten method to correct for the autocorrelation? Explain.
e)When using the Prais-Winsten method,how many observations will you have in your final analysis? Why? Explain.

---

Definitions:

Female Lifespan

Refers to the average duration of life of a female in a population, typically measured in years.

Social Networks

Platforms or communities where individuals interact, share ideas, and establish relationships, often facilitated by technology.

Brain Parts

The various anatomical structures of the brain, each with specific functions related to cognition, emotion, and behavior.

Body Weight

The numerical value representing an individual's mass, often used as an indicator of health, and calculated in units such as pounds or kilograms.