1. Cochrane-Orcutt. Consider a linear regression model

Yt =B₁ + B₂xt + Et.

Suppose you have the following data for four time periods:

t 1 2 3 4

Yt

0

2 2 0

0 1 2 3

Without using any software, find the Cochrane-Orcutt and Prais-Winsten estimates for ₁ and

3₂. Show your work. Compare the estimates.