A what would be the transformed, Basic Statistics

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A what would be the transformed

Suppose the autoregressive error process for the model is that given by (12.11)

a. What would be the transformed variables and for whieh the random term in the regression model are uncorrelated?

b. How would you estimate the parameters ρ₁ and ρ₂ for use with the Cochrane-Orcutt procedure?

c. HQW would you estimate the parameters ρ₁ and ρ₂ with the Hildreth-Lu procedure?

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