Hello,
Here is the full background info:
In this question, the answer states that the intercept nor the coefficient on the first lag of the first-differenced exchange rate in Regression 2 differs significantly from zero (based on the level of significance)
In this question, the intercept of 0.0092 and coefficient of −0.1279 are, although not significantly different from zero at 5% level of significance, included in the calculation:
My question is: why is it that in the first question, we can exclude the intercept and the coefficient (as they are not significantly different from zero), while in the second question, we have to include the intercept and the coefficient even though they are not significantly different from zero?
Thanks so much