Download the file retail.csv. This file contains quarterly growth rates in UK retail sales (seasonally adjusted) from 1989Q2 to 2017Q2. Denote this time series by and run the following OLS regression:

Conduct a Breusch-Godfrey test with 4 lags to test whether the residuals from this regression are serially correlated.

Based on the sample correlogram shown below, which of the following statements is correct?

Download the file retail.csv. This file contains quarterly growth rates in UK retail sales (seasonally adjusted) from 1989Q2 to 2017Q2. Denote this time series by and run the following OLS regression:

Conduct a Breusch-Godfrey test with 4 lags to test whether the residuals from this regression are serially correlated.

Based on the sample correlogram shown below, which of the following statements is correct?

Let 

and .

Which of the following statements is correct?

If and , which of the following statements is correct?

In the presence of autocorrelation, which of the following statements is correct?

In the following equation, refers to gross domestic product, refers to domestic bank credit issued and refers to foreign direct investment. Which of the following statements is then true?

The file profits.csv includes data on profits and assets of 88 firms (some firms having missing data). The variables in the data set are and , which are each firm’s profit and assets in million dollars, and which is a dummy variable which is equal to 1 if the CEO of the firm is not the owner of the firm, and is zero otherwise.

Use R to get the scatterplot of against . What does the scatterplot suggest?

The file profits.csv includes data on profits and assets of 88 firms (some firms having missing data). The variables in the data set are and , which are each firm’s profit and assets in million dollars, and which is a dummy variable which is equal to 1 if the CEO of the firm is not the owner of the firm, and is zero otherwise.

Use R to get the scatterplot of against . What does the scatterplot suggest?