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The analyst takes the natural log of the data before beginning further data analysis.She then tests for a unit root using the logged data from

The analyst takes the natural log of the data before beginning further data analysis.She then tests for a unit root using the logged data from January 2000 through to the December 2019, using an Augmented Dickey Fuller test, allowing for a drift and trend. The analyst includes 4 lagged differences of the logged data as regressors. The test statistic is -2.54. The critical value defining the rejection region for the Augmented Dickey-Fuller testwith the number of observations that have been used is -4.00 at the 1% level of significance. Perform the Augmented Dickey-Fuller test at the 1% level of significance, stating both the null hypothesis and the alternative hypothesis, the decision rule, and the conclusion of the test.

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