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Linear Regression Model Assignment | Professional Writing Services

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January 16th, 2020

If I have a particular linear regression model, how the value of is related to the question whether the process has a unit root?

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(a) Consider the linear regression model53ft = E + “Wt—1 + fiat—1 + Er (“l where the error term e; is assumed to be independently and iden-tically distributed with zero mean and variance 02. Explain howthe value of the parameter qr in this model is related to the questionwhether the process 3;; has a unit root.

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