Suggested Answer:

(c) The Berenblutt-Webb test Statistic is
 
     g = (RSS1ST DIFFERENCE EQUATION) / (RSS UNDIFFERENCED EQUATION)
       = (2.93*109) / (2.22*109)
       = 1.320

     For 41 observations, n = 41, k' = 1, and significance level = 5%; the significant Durbin-Waston
     statistic dL is 1.45. Since the Berenblutt-Webb g statistic, 1.320, fall below dL, do not reject the
     null hypothesis that p = 1.