Question: (c) Explain the difference between the Augmented Dickey Fuller (ADF) test and the Dickey Fuller (DF) test. Why does one perform an ADF test in

(c) Explain the difference between the Augmented Dickey Fuller (ADF) test and the Dickey Fuller (DF) test. Why does one perform an ADF test in the presence of autocorrelation?

(d) Stat the null and alternative hypotheses for the ADF test. Using the unit root test results, what do you conclude about the stationarity property of LSPOT and LFUTURES at the 5% significance level.

(e) Provide two different and alternative terminologies for a series that has a unit root.

(c) Explain the difference between the Augmented Dickey Fuller (ADF) test and

the Dickey Fuller (DF) test. Why does one perform an ADF test

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