Question: Conduct unit root tests for two hypothetical variables: VAR1 and VAR2. Complete the following table: (6) Remember to generate the logs of all the applicable
Conduct unit root tests for two hypothetical variables: VAR1 and VAR2. Complete the following table: (6) Remember to generate the logs of all the applicable variables, prior to conducting the tests. Also remember to name the logged variables you created appropriately (for the sake of your own referencing). Page 3 of 3 Series Model ADF Lags ADF VAR1 Trend and intercept Intercept None D(VAR1) Trend and intercept Intercept None VAR2 etc. * Statistically significant at the 10% level ** Statistically significant at the 5% level *** Statistically significant at the 1% level
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