Suppose you estimated the following regression and obtain results as outlined below. Standard errors in parentheses. Ay, = 2.4 + 0.926y,+4, (0.224) (0.043) Test the hypothesis that y, has a unit root vs the alternative that it does not at the 5% level of significance.

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.6: Higher-degree Polynomials And Rational Functions
Problem 1TU: The following fictitious table shows kryptonite price, in dollar per gram, t years after 2006. t=...
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Suppose you estimated the following regression and obtain results as outlined below.
Standard errors in parentheses.
Ay, = 2.4 + 0.926y,+u,
(0.224) (0.043)
Test the hypothesis that y, has a unit root vs the altemative that it does not at the 5%
level of significance.
Transcribed Image Text:Suppose you estimated the following regression and obtain results as outlined below. Standard errors in parentheses. Ay, = 2.4 + 0.926y,+u, (0.224) (0.043) Test the hypothesis that y, has a unit root vs the altemative that it does not at the 5% level of significance.
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