Neither the intercept nor the coefficient on the first lag of the first-differenced exchange rate in Regression 2 differs significantly from zero because the t-statistics of both coefficients are less than the critical t-statistic of 1.98.Also, the residual auto-correlations do not differ significantly from zero because the t-statistics of all autocorrelations are less than the critical t-statistic of 1.98.
What will be b0 and b1 with explaining the above statement↑?
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