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Essay Details:
Essay text:
The primary reason for this combination was that including additional lags was distorted the function either through being insignificant or by adversely influencing other variables to become insignificant. This model was also supported by the values of the following criteria:
• Akaike info criterion
• Schwarz criterion
• Adjusted R2
The goal was to find the optimal of the above three criteria which are the lowest possible values of Akaike and Schwarz and the highest possible value of R2 adjusted.
Variable Coefficient Std. Error t-Statistic Prob.
C 0.000843 0.000430 1.960178 0.0511
AR(1) 0...
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