Can you helpe me solve this?

Vector error correction model (45 points) 3. The expectations theory of the term structure of interest rates implies that if two interest rates of di'erent maturities are I (1), then they will be cointegrated. You want to test this in an empirical study and choose to look at the interest rate on 90day U.S. Treasury bills at an annual rate (RQOD) and on one-year US. Treasury bonds (RIY). (a) (b) On both time series, you perform an Augmented Dickey Fuller test with six lags (for which the Akaike information criterion is maximized in both cases). You obtain the following ADF test statistics and pvalues: test stat pvalue RQODt 1.952 0.226 Rli'}, 2.221 0.163 Based on a signicance level of 5%, what do you conclude from the results? Start your expla- nations by referring to the null and the alternative hypothesis of the ADF test. [Do 11035 write more than three lines of text] ( 5 points ) see chapter 8.1 in Brooks (2014) A friend of yours suggests to run the test by Kwaitowski, Phillips, Schmidt, and Shin (KPSS). State the null and the alternative hypothesis underlying this test. Suppose you are using a signicance level of 5%, which pvalue would you need to nd for RQOD and RIY to reach a conducive decision? [Do ailoi write more than three lines of text] (5 points) see chapter 8.1 in Brooks (2014]