12. We can run OLS and calculate residuals. Residuals are given below: e1=0.3 e2=-0.2 e3=0.1 e4--0.4 e5 0.2 1) Draw a sc
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12. We can run OLS and calculate residuals. Residuals are given below: e1=0.3 e2=-0.2 e3=0.1 e4--0.4 e5 0.2 1) Draw a sc
12. We can run OLS and calculate residuals. Residuals are given below: e1=0.3 e2=-0.2 e3=0.1 e4--0.4 e5 0.2 1) Draw a scatterplot of residuals against time. Based on the graph, can you determine if there exist serial correlations. (10 points) 2) Use the Durbin-Watson d test to determine if there exists serial correlation problem. (10 points) The equation for the Durbin-Watson d statistic for Tobservations is: T d = (-ę-12/ .)?/} 7
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