Illustrate how you transform the following model to estimate it through the Generalized Least Squares: yt = ß0 + ß1xt + ut , ut = ?ut-4 + t , t ~ N(0, s2 ) where t is a classical error term,...

Illustrate how you transform the following model to estimate it through the Generalized Least Squares: yt = ß0 + ß1xt + ut , ut = ?ut-4 + t , t ~ N(0, s2 ) where t is a classical error term, distributed normally with zero mean and s 2 variance. 2. Illustrate how you transform the following model to estimate it through the Weighted Least Squares: yt = ß0 + ß1xt + ß2zt + ut , ut ~ N(0, s2 z 4 t )


AS4.DVI Assignment 4 – BUEC 333 Due: Monday March 19, 2012 in class. 1. Illustrate how you transform the following model to estimate it through the General- ized Least Squares: yt = β0 + β1xt + ut, ut = ρut−4 + �t, �t ∼ N (0, σ 2) where �t is a classical error term, distributed normally with zero mean and σ 2 variance. 2. Illustrate how you transform the following model to estimate it through the Weighted Least Squares: yt = β0 + β1xt + β2zt + ut, ut ∼ N (0, σ 2z4 t )