(b)(i) For 42 observations, n =42, k' = 1, and significant level = 5%,
the significant Durbin-Waston
statistic dL
is 1.46. Since the Durbin-Waston d statistic, 1.200, falls below dL,
there is
evidence of positive,
first order autocorrelation.
(ii) The large-sample normality test statistic is
z = (n)1/2*p = (42)1/2*0.3128 = 2.027
Therefore, reject the null
hypothesis that p = 0