Table 7.
Diagnostic Review
| Diagnostic Tests | Problem | X2 (P-value) | Decision |
|---|---|---|---|
| LM | Serial correlation | 0.373 | No serial correlation exists |
| Jarque–Bera | Normality | 0.344 | Residuals are normal distributed |
| Breusch Pagan Godfrey | Heteroscedasticity | 0.672 | No heteroscedasticity exists |
| Ramsey RESET test | Model specification | 0.647 | Model is correctly specified |
| VIF | Multicollinearity | 3.424 | No multicollinearity exists |
| CUSUM | Stability | - | Model is stable |
| CUSUMSQ | Stability | - | Model is stable |