A study of the sale of DVD players gave the following model: DVD; = 432 + 24Y; – 2.5P; t ratio (11.4) (3.56) (-2.8) R? = 0.8314 DW = 1.24 N = 30 where the variables are: DVD = monthly sale of DVD...

Extracted text: A study of the sale of DVD players gave the following model: DVD; = 432 + 24Y; – 2.5P; t ratio (11.4) (3.56) (-2.8) R? = 0.8314 DW = 1.24 N = 30 where the variables are: DVD = monthly sale of DVD players Y; = income of households during monthi P = price of DVD players during month i DW = Durbin-Watson statistics a) Fomally construct hypothesis testing to test the significance of slope coefficients at 5% level of significance. b) Interpret the slope coefficients. c) Examine the hypothesis of is there serially correlated residuals? d) Interpret the implications of autocorrelation for the estimated model above. e) List two alternative ways to overcome autocorrelation.