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Suppose an Economist Has Developed a Model for Forecasting Annual

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Suppose an economist has developed a model for forecasting annual consumption,yt,as function of total labor income,x1t,and total property income,x2t based on 20 years on annual data.The following regression model has been developed: Suppose an economist has developed a model for forecasting annual consumption,y<sub>t</sub>,as function of total labor income,x<sub>1</sub><sub>t</sub>,and total property income,x<sub>2</sub><sub>t</sub> based on 20 years on annual data.The following regression model has been developed:   = 7.81 + 0.91x<sub>1</sub><sub>t </sub>+ 0.57x<sub>2</sub><sub>t</sub> with the standard error = 1.29 and the Durbin-Watson d statistic = 2.09.Using an alpha = .05,which of the following is the correct critical value for testing whether the residuals are autocorrelated? A) 1.20 and 1.41 B) 1.10 and 1.54 C) 1.08 and 1.53 D) Can't be determined without seeing the residuals. = 7.81 + 0.91x1t + 0.57x2t with the standard error = 1.29 and the Durbin-Watson d statistic = 2.09.Using an alpha = .05,which of the following is the correct critical value for testing whether the residuals are autocorrelated?


Definitions:

Fertilized Egg

A cell formed by the union of a male sperm and a female ovum, marking the beginning of embryonic development.

Embryos

Early stages of development in multicellular organisms after fertilization and before birth, during which the basic structures of the organism are formed.

Heritable

Traits or characteristics that are passed from parents to offspring through genes.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, making them genetically distinct, similar to regular siblings.

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