APrice, = 3.8 - 0.5 Price R?= 0.88 N-600 (0.6) (0.25) Given the above regression results, which of the followings is correct for Dickey-Fuller statistic and stationarity of price (P) at 1% significance level? Select one: O a. DF - -2.5 and Pis non-stationary O b.DF --6 and Pis non-stationary O .DF = -6 and Pis stationary O d.DF = -5 and Pis stationary O e. DF = -2.5 and P is stationary O f. DF = -2 and Pis non-stationary O g. DF = -5 and P is non-stationary O h. DF = -2 and Pis stationary %3D
APrice, = 3.8 - 0.5 Price R?= 0.88 N-600 (0.6) (0.25) Given the above regression results, which of the followings is correct for Dickey-Fuller statistic and stationarity of price (P) at 1% significance level? Select one: O a. DF - -2.5 and Pis non-stationary O b.DF --6 and Pis non-stationary O .DF = -6 and Pis stationary O d.DF = -5 and Pis stationary O e. DF = -2.5 and P is stationary O f. DF = -2 and Pis non-stationary O g. DF = -5 and P is non-stationary O h. DF = -2 and Pis stationary %3D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please do not explain, just say the answer like A,B,C,D,E
Transcribed Image Text:Which of the followings correct?
Select one:
a.
Autocorrelation and heteroscedascity may be addressed by utilization of Cochrane-Orcutt process.
O b. Time lags in adjustments of market equilibrium would not naturally solve the autocorrelation.
O c. Using first difference models would be addressing time lags of autocorrelation in a static model.
d. Durbin's H-test would not be helpful for identifying autocorrelation in dynamic models
O e. Autocorrelation would not lead to biasedness of estimated variances.
Transcribed Image Text:APrice, = 3.8 - 0.5 Price-1 R?= 0.88 N=600
(0.6) (0.25)
Given the above regression results, which of the followings is correct for Dickey-Fuller statistic and
stationarity of price (P) at 1% significance level?
Select one:
O a. DF = -2.5 and P is non-stationary
O b. DF = -6 and Pis non-stationary
O .DF = -6 and P is stationary
O d. DF = -5 and Pis stationary
O e. DF = -2.5 and Pis stationary
O f. DF = -2 and Pis non-stationary
O g. DF = -5 and Pis non-stationary
O h. DF = -2 and Pis stationary
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