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Figure B.1 shows a time series y t for t = 1, 2, , 500. 150 140 130 120 110 100 m 50 100 150
Figure B.1 shows a time series yt for t = 1, 2, , 500.
150 140 130 120 110 100 m 50 100 150 200 Mucho 250 300 In order to decide whether the series contains a unit root, initially a Dickey-Fuller-Test (DF) is conducted. Write down the hypotheses for the appropriate DF-Test and carefully explain how the test is implemented. Given the plot in Figure B.1 what outcome would you expect. 150 140 130 120 110 100 m 50 100 150 200 Mucho 250 300 In order to decide whether the series contains a unit root, initially a Dickey-Fuller-Test (DF) is conducted. Write down the hypotheses for the appropriate DF-Test and carefully explain how the test is implemented. Given the plot in Figure B.1 what outcome would you expectStep by Step Solution
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