A regression of yt on x+ was conducted and an ADF test on the estimated residuals was performed. The ADF test statistic was found to be -3.10. The Engle-Granger 5% critical value is -3.398 and the ADF 5% critical value - 2.86. On the basis of this information, you: Select one: O a. Reject the null hypothesis of no cointegration at the 5% level because - 3.10 < -2.86 O b. Reject the null hypothesis of no cointegration at the 5% level because -3.398 < -2.86 O c. Reject the null hypothesis of cointegration at the 5% level because -3.398 < -2.86 O d. Do not reject the null hypothesis of no cointegration at the 5% level because -3.398 < -3.10 O e. None of these
A regression of yt on x+ was conducted and an ADF test on the estimated residuals was performed. The ADF test statistic was found to be -3.10. The Engle-Granger 5% critical value is -3.398 and the ADF 5% critical value - 2.86. On the basis of this information, you: Select one: O a. Reject the null hypothesis of no cointegration at the 5% level because - 3.10 < -2.86 O b. Reject the null hypothesis of no cointegration at the 5% level because -3.398 < -2.86 O c. Reject the null hypothesis of cointegration at the 5% level because -3.398 < -2.86 O d. Do not reject the null hypothesis of no cointegration at the 5% level because -3.398 < -3.10 O e. None of these
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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