A.     Estimate the parameter ö by regression analysis.

B.     What are 95% confidence intervals for the value of ö?

C.    You initially believed that ö is 50%. Should you reject this assumption?

The time series course does not teach regression analysis. You are assumed to know how to run a regression analysis, and you must run regressions for the student project.

Use the Excel regression add-in. The 95% confidence interval is the estimated â ± the t-value × the standard error of â. The t-value depends on the number of observations. Excel has a built-in function giving the t-value for a sample of N observations.

I have no idea how to manually get the standard error found by excel (.289466).  If anyone has an idea how to get this I would appreciate any help.

Note: We are using 6 degree's of freedom when calculating the t value?  That is the only way for me to match the confidence intervals using excels standard error.

I assume this is because we had 8 entries (or rather pairs of Y_t and Y_t-1) and estimated 2 parameters, correct?

Thanks for any clarification.