4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?
4. Consider the following results based on the estimation of two different models with rural population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in Model 2 for 65 years in a country. '8=0.9 ~ 11 S = -0.03 - - X Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056 Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06 t' is the time trend variable and 'd' refers to Durbin-Watson test statistic. + (i) Results from above show that there is strong evidence of autocorrelation in the error terms in model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate proof to show that you agree/disagree with this statement. (ii) Interpret the slope coefficient in the two models and what would happen if we used the incorrect model for interpretation. What according to you was the cause for auto-correlated errors in whichever model it is present?
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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Transcribed Image Text:4. Consider the following results based on the estimation of two different models with rural
population (Rp) as in Model 1 and with growth rate in rural population (Grp InRp-InRp-1) as in
Model 2 for 65 years in a country.
'8=0.9 ~ 11
S = -0.03 - - X
Model 1: InRp 13.77(31.55)-0.325 (-19.22)t, d-0.056
Model 2: Grp = 0.064(-3.9) -0.0056(2.92)t, d-2.06
t' is the time trend variable and 'd' refers to Durbin-Watson test statistic.
+
(i) Results from above show that there is strong evidence of autocorrelation in the error terms in
model 2 while it is not the case in model 1. Without consulting the DW tables, give appropriate
proof to show that you agree/disagree with this statement.
(ii) Interpret the slope coefficient in the two models and what would happen if we used the
incorrect model for interpretation. What according to you was the cause for auto-correlated errors
in whichever model it is present?
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