Suppose an economist has developed a model for forecasting annual consumption,y_t,as function of total labor income,x₁_t,and total property income,x₂_t based on 20 years on annual data.The following regression model has been developed: = 7.81 + 0.91x₁_t+ 0.57x₂_t with the standard error = 1.29 and the Durbin-Watson d statistic = 2.09.Using an alpha = .05,which of the following is the correct critical value for testing whether the residuals are autocorrelated? A)1.20 and 1.41 B)1.10 and 1.54 C)1.08 and 1.53 D)Can't be determined without seeing the residuals.

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The Answer of Suppose an economist has developed a model for forecasting annual consumption,y_t,as function of total labor income,x₁_t,and total property income,x₂_t based on 20 years on annual data.The following regression model has been developed: = 7.81 + 0.91x₁_t+ 0.57x₂_t with the standard error = 1.29 and the Durbin-Watson d statistic = 2.09.Using an alpha = .05,which of the following is the correct critical value for testing whether the residuals are autocorrelated? A)1.20 and 1.41 B)1.10 and 1.54 C)1.08 and 1.53 D)Can't be determined without seeing the residuals.

Suppose an Economist Has Developed a Model for Forecasting Annual