//  File New-Lec4-02-04-03-03. Edition 7/14/2010.


//  Lab Specs
//    Window Title
         Autocorrelation
//    Option (0 Normal, 1 Auto, 2 Heter, 3 X-e correlation, 4 Measurement, 5 Consistency (Is this used?)
         1
//    Constant List
         40 60 10 50
//    Coefficient List
         -2 6 2 2
//    iListVarErrors
         50 500 150 500
//    iListSamples
         3 250 1 5
//    iListSamplesAutocorrelation
         3 50 1 40
//    iListSamplesMeasurement
         3 50 1 5
//    iListXMinima
         0 10 10 0
//    iListXMaxima
         20 30 10 30
//    strListFromCoef
         -1.0 4.0 .5 1.0
//    strListToCoef
         1.0 6.0 .5 3.0
//    strListRho
         -.9 .9 .3 .6
//    strListHeter
         -2.0 2.0 1.0 .0
//    strListCoefXAndError
         -.9 .9 .3 .0
//    iListXMeasErrVar
         0 100 50 0

//  Problem Specs
//    SampleSize
//    PauseCheckbox (-1 checked, 0 cleared)
//    EstType (0 Error, 1 Constant, 2 Coefficient)
//    ErrorVar
//    ConstValue
//    CoefValue
//    xMinValue
//    xMaxValue
//    ErrTermCheckbox (0 not visible and unchecked, -1 visible and checked, 1 visible and unchecked))
//    VarEstAndFromTo (-1 VarEst visible, 0 nothing visible, 1 From-To visible)



` 30 0 2 500 10 2 0 30 0 -1
Objective: Show that when autocorrelation is present, the ordinary least squares (OLS)
 estimation procedure is not BLUE, the ordinary least squares estimation (OLS) procedure
 is not the best linear unbiased estimation procedure.
_
The generalized least squares (GLS) is better because the variance of the coefficient
 estimate's probability distribution is less.

` 30 0 2 500 10 2 0 30 0 -1
By default, the rho value is .6. Autocorrelation is present.
_
1. Click Start button and then after many, many repetitions click Stop.
 What is the variance of the coefficient estimate's numercial values?
_      (in the "Var" line under "Coef Est")
 
`
Focus on the drop down box below the Act Coef list. 
 Change the estimation procedure from ordinary least squares (OLS)
 to generalized least squares (GLS). 
_
2. Click Start and then, after many, many repetitions click Stop.
 When the GLS estimation procedure is used, what is the variance of the coefficient
 estimate's numercial values?
_      (in the "Var" line under "Coef Est")

`
3. In which estimation procedure, OLS or GLS, is the variance smaller? Why is
 this important?