Question: Repeat Exercise for the model given in Eq. and comment on the results.
Exercise: Reestimate regression by adding time, t, as an additional regressor, t taking values of 1, 2, ... , 54. t is known as the trend variable.
(a) Compare the results of this regression with those given in Table. Is there a difference between the two sets of results?
(b) If the coefficient of the trend variable is statistically significant, what does it connote?
(c) Is there serial correlation in the model with the trend variable in it? Show the necessary calculations.
