Q2 part iv ( I have highlighted it)

[riju joshi]

Can we do a simple t test and find the significance?

[Muzna Alvi]

I think yes. A simple T test should do to test is .786 is significant.

On Tue, Apr 30, 2013 at 9:49 AM, riju joshi <joshi...@gmail.com> wrote:

Can we do a simple t test and find the significance?

--
You received this message because you are subscribed to the Google Groups "MSU econ 2012 study group" group.
To unsubscribe from this group and stop receiving emails from it, send an email to msu-econ-2012-stud...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
 
 

--
--

[riju joshi]

Thanks.

Final exam 2006 question 2, part c.
My answer:
Suppose X are uncorrelated with epsilons.
Least squares are consistent because Y_t-1 is not correlated with epsilon_t. It is correlated with epsilon_t-1 but since epsilons are white noise,they themselves uncorrelated and thus Y_t-1 is not correlated with epsilon_t. This satisfies the condition for consistency.

Please verify

[Doosoo Kim]

The usual t statistics doesn't seem to have t-distribution here in general.

Asymptotic inference is valid.

I suggest using critical values for standard normal.

On 30 April 2013 09:49, riju joshi <joshi...@gmail.com> wrote:

Can we do a simple t test and find the significance?

--

[riju joshi]

Aahh..I see..that's what I was confused about.. Whether to use critical t values or normal t values.
Thanks.