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3. Dickey-Fuller unit root test (10 points) This series is the US personal consumption expenditure PCE, monthly data from January 1959 to January 2018, as

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3. Dickey-Fuller unit root test (10 points) This series is the US personal consumption expenditure PCE, monthly data from January 1959 to January 2018, as shown below. 5009 We carry out the Dickey-Fuller test and obtain: Dickey-Fuller test for unit root Number of obs 708 Interpolated Dickey-Fuller Test 16 Critical 5% Critical 108 Critical Statistic Value Value Value 2 (t) -0. 015 -3.960 -3. 410 -3. 120 Mackinnon approximate p-value for z (t) = 0. 9941 a). Please formulate the Dickey-Fuller test for PCE. What is the null hypothesis of this test? b). Please explain what you can conclude from the result table above. Why should the test not rely on the f-critical values

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