Apply sargans common factor test to check that the


Question: 1. Explain the following.

(a) The Durbin-Watson test.

(b) Estimation with quasi first differences.

(c) The Cochrane-Orcutt procedure.

(d) Durbin's h-test.

(e) Serial correlation due to miss specified dynamics.

(f) Estimation in levels versus first differences.

2. Apply Sargan's common factor test to check that the significant serial correlation is not due to miss specified dynamics.

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Engineering Mathematics: Apply sargans common factor test to check that the
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