The diagnostic tests
| LM test statistic | Model 1 | Model 2 |
|---|---|---|
| R2 | 0.998 | 0.938 |
| Adjusted R2 | 0.996 | 0.814 |
| F-statistics | 463.59 (0.000) | 236.20 (0.000) |
| Serial correlation | 2.82 (0.0209) | 2.7682 (0.0003) |
| Heteroscedasticity | 29.00 (0.4125) | 29.00 (0.4125) |
| Normalit | 28.09 (0.0000) | 28.09 (0.0000) |
| Ramsey RESET test | 1.37 (0.3129) | 1.14 (0.3978) |
| LM test statistic | Model 1 | Model 2 |
|---|---|---|
| 0.998 | 0.938 | |
| Adjusted | 0.996 | 0.814 |
| 463.59 (0.000) | 236.20 (0.000) | |
| Serial correlation | 2.82 (0.0209) | 2.7682 (0.0003) |
| Heteroscedasticity | 29.00 (0.4125) | 29.00 (0.4125) |
| Normalit | 28.09 (0.0000) | 28.09 (0.0000) |
| Ramsey RESET test | 1.37 (0.3129) | 1.14 (0.3978) |
Source(s): The author's computation using Stata 14
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