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Homework answers / question archive / In a multiple regression analysis containing two explanatory variables plus a constant with 30 data points, suppose that the errors are serially correlated and test is applied to the regression to investigate this issue

In a multiple regression analysis containing two explanatory variables plus a constant with 30 data points, suppose that the errors are serially correlated and test is applied to the regression to investigate this issue

Statistics

In a multiple regression analysis containing two explanatory variables plus a constant with 30 data points, suppose that the errors are serially correlated and test is applied to the regression to investigate this issue. The test statistic takes a value of 2.92 with 1 % significance level.

1-   Identify the problem that the researcher may face?

2-   What is the appropriate test and conclusion when the researcher test this issue? (State the hypothesis tests, all critical values, test statistics and conclusion)

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