Question 2 The results of unit root test are presented in Table 1(a) and (b) below. Briefly explain the hypothesis results. Table 1(a) Null Hypothesis: LNGDP has a unit root Exogenous: Constant Lag Length: 1 (Automatic - based on AIC, maxlag=9) t-Statistic Prob." Augmented Dickey-Fuller test statistic Test critical values: 0.115497 -3.610453 -2.938987 -2.607932 0.9630 1% level 5% level 10% level "MacKinnon (1996) one-sided p-values.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter11: Topics From Analytic Geometry
Section11.4: Plane Curves And Parametric Equations
Problem 44E
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Question 2
The results of unit root test are presented in Table 1(a) and (b) below. Briefly explain the
hypothesis results.
Table 1(a)
Null Hypothesis: LNGDP has a unit root
Exogenous: Constant
Lag Length: 1 (Automatic - based on AIC, maxlag=9)
t-Statistic
Prob.*
Augmented Dickey-Fuller test statistic
Test critical values:
0.115497
0.9630
1% level
-3.610453
5% level
-2.938987
10% level
-2.607932
*Mackinnon (1996) one-sided p-values.
Table 1(b)
Null Hypothesis: D(LNGDP) has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic - based on AIc, maxlag=9)
t-Statistic
Prob.*
Augmented Dickey-Fuller test statistic
Test critical values:
-5.325446
-3.610453
0.0001
1% level
5% level
-2.938987
10% level
-2.607932
*MacKinnon (1996) one-sided p-values.
Transcribed Image Text:Question 2 The results of unit root test are presented in Table 1(a) and (b) below. Briefly explain the hypothesis results. Table 1(a) Null Hypothesis: LNGDP has a unit root Exogenous: Constant Lag Length: 1 (Automatic - based on AIC, maxlag=9) t-Statistic Prob.* Augmented Dickey-Fuller test statistic Test critical values: 0.115497 0.9630 1% level -3.610453 5% level -2.938987 10% level -2.607932 *Mackinnon (1996) one-sided p-values. Table 1(b) Null Hypothesis: D(LNGDP) has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on AIc, maxlag=9) t-Statistic Prob.* Augmented Dickey-Fuller test statistic Test critical values: -5.325446 -3.610453 0.0001 1% level 5% level -2.938987 10% level -2.607932 *MacKinnon (1996) one-sided p-values.
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