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SOLVED:In Example 10.6 , we used the data in FAIR to estimate a variant on Fair's model for predicting presidential election outcomes in the United States. i. What argument can be made for the error term in this equation being serially uncorrelated? (Hint: How often do presidential elections take place?) ii. When the OLS residuals from (10.23) are regressed on the lagged residuals, we obtain ρ̂=-.068 and se(ρ̂)=.240 . What do you conclude about serial correlation in the ut ? iii. Does the small
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