(1) All relevant EViews output should be included in your answer. Answers without EViews output will be subject to a 50% penalty.
(2) Answers judged to be identical copies (including identical EViews output) will be severely penalized.
(3) Assume that all error terms satisfy the standard assumptions of the linear regression model.
(4) All hypothesis testing should be conducted at the 5% significance level.
(5) For all hypothesis tests, explicitly state your acceptance and rejections regions.
(6) The data file for this homework is available via the keio.jp system CLASS SUPPORT option. The data file for Problem A, an Excel file (Orange Data.xls), is listed as handout #42, and is entitled “Data Set for Homework #5”.
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