(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.