Given a sample of 50 observations and 4 explanatory variables, what can you say about autocorrelation if (a) d = 1.05? (b) d = 1.40 (c) d = 2.50? (d) d = 3.97? Assume a=5% G22. Suppose you have a sample of 40 observations and 3 explanatory variables and you wantto test for autocorrelation. What can you say about autocorrelation if you have thefollowing Durbin-Watson statistics? Assume a=5%. G1 a. d=1.30 b. d=1.00 c. d=2.25 d. d=1.95 B. Work out questions1. For a study of the relationship between consumption expenditure (C ) and income (Y) ina hypothetical town, the data collected from 10 families are shown below.C 100 120 80 100 500 120 50 600 150 250Y 80 90 80 70 300 75 30 350 70 150Based on the data,a. Fit the regression equationb. Calculate variances and SEs of the parameter estimatesc. Determine R2d.
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