The ADF unit root test results of savings are given below. Part a) What do you...
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The ADF unit root test results of savings are given below. Part a) What do you think about the unit root of the savings variable at the constant level? Write hypotheses of unit root. If it has a unit root, how we can solve it? Part b) Tell the differences between the KPSS (Kwiatkowski-Phillips-Schmidt-Shin) test and the ADF (Augmented Dickey-Fuller) test. Part c) What is the difference between a stationary and a non-stationary time series variable? Null Hypothesis: SAVINGS has a unit root Exogenous: Constant Lag Length: 0 (Automatic-based on SIC, maxlag-5) Augmented Dickey-Fuller test statistic Test critical values: 1% level 5% level 10% level t-Statistic Prob. 0.5900 -1.349574 -3.724070 -2.986225 -2.632604 The ADF unit root test results of savings are given below. Part a) What do you think about the unit root of the savings variable at the constant level? Write hypotheses of unit root. If it has a unit root, how we can solve it? Part b) Tell the differences between the KPSS (Kwiatkowski-Phillips-Schmidt-Shin) test and the ADF (Augmented Dickey-Fuller) test. Part c) What is the difference between a stationary and a non-stationary time series variable? Null Hypothesis: SAVINGS has a unit root Exogenous: Constant Lag Length: 0 (Automatic-based on SIC, maxlag-5) Augmented Dickey-Fuller test statistic Test critical values: 1% level 5% level 10% level t-Statistic Prob. 0.5900 -1.349574 -3.724070 -2.986225 -2.632604
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Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
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