%%OLS with MA(1) error%%

tr=10000;
n=500;
beta=zeros(tr,2);
t_test=zeros(tr,1);

for j=1:tr

e=zeros(n,1);
u=randn(n,1);
x=zeros(n,1);
for i=2:n
    e(i)=1.5*u(i-1)+u(i);
    x(i)=0.6*x(i-1)+randn;
end

y=1+2*x+e;
beta(j,:)=[ones(n,1) x]\y;
resid=y-[ones(n,1) x]*beta(j,:)';
var=((resid'*resid)/(n-2))*inv([ones(n,1) x]'*[ones(n,1) x]);
if abs((beta(j,2)-2)/(var(2,2)^0.5))>1.96
    t_test(j,:)=1;
end
end

mean(t_test)