Observations of variables y, x1, and x2 were taken over 100 consecutive time periods. a. Conduct a regression analysis of these data. b. Plot the residuals versus the time periods. Describe the graph. c. Perform the Durbin-Watson test. Is there evidence of autocorrelation? Use α = .10. d. If autocorrelation was detected in Part c, propose an alternative regression model to remedy the problem. Use the computer to generate the statistics associated with this model. e. Redo Parts b and c. Compare the two models.
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