Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A researcher studies the total quantity of monthly imports (wt) of the U.S. over the sample period 1965:M1 to 2014:M12. Suppose he estimates the following
A researcher studies the total quantity of monthly imports (wt) of the U.S. over the sample period 1965:M1 to 2014:M12. Suppose he estimates the following regression for logarithm of IM,: A Aln (IA/1,) = 0.1011 0.0028 In (\"up 1) O.0313A|n(lMt_1) + 0.0566Aln (IA/1H), (0.0089) (0.0009) (0.0063) (0.0047) where the standard errors shown in parentheses are computed using the homoskedasticityonly formula. The researcher wants to test the null hypothesis of a unit root against the alternative hypothesis of stationarity. The augmented DickeyFuller (ADF) statistic associated with this test is (Round your answer to four decimal places. Enter a minus sign if your answer is negative.) At the 5% signicance level, the researcher will ':| the hypothesis of a unit root. fail to reject reject
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started