Illustrate the use of fourth-order autocorrelation


Problem

1. Apply the LM test to test for first-order and second-order serial correlation in errors for the estimation of some multiple regression models with the data sets presented. In each case compare the results with those obtained by using the DW test and Durbin's h-test if there are lagged dependent variables in the explanatory variables.

2. In the case of data with housing starts illustrate the use of fourth-order autocorrelation using the DW test and the LM test.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Econometrics: Illustrate the use of fourth-order autocorrelation
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