Econometrics formative assignment Research Paper

Econometrics formative assignment - Research Paper Example-0.06731.2800.260 *. *. 28-0.079-0.07732.9130.239 .. .. 29-0.020-0.01933.0160.277 .. .. 300.029-0.01533.2370.312 .. .. 31-0.029-0.03533.4620.349 .* .** 320.1830.19742.3440.104 .. .. 33-0.019-0.01342.4440.126 .. .. 340.0270.04242.6360.147 .. .. 35-0.052-0.04743.3680.157 .. *. 360.019-0.07243.4700.183Correlogram for VodafoneDate 08/17/09 Time 2105Sample 1/01/1990 12/31/2008Included observations 224AutocorrelationPartial CorrelationACPAC Q-Stat Prob .. .. 10.0020.0020.00070.979 .. .. 20.0190.0190.08260.960 .* .* 30.1820.1827.64890.054 *. *. 4-0.061-0.0638.49920.075 .* .* 50.1460.14513.4510.019 .. .. 60.015-0.02113.5020.036 .* .* 70.0880.11615.3220.032 .* .* 80.1320.07619.4220.013 .. .. 9-0.027-0.00919.5960.021 .. .. 100.048-0.00620.1390.028 .* .* 110.1530.14025.7130.007 .* .* 120.1150.11628.8810.004 .. .. 130.006-0.03328.8890.007 .. .. 140.009-0.04128.9070.011 .. *. 15-0.032-0.08329.1530.015 .. .....The t wo vertical lines in the commencement exercise column enclose the 95% confidence interval. Id k that extends past the broken line, reject the null hypothesis that k = 0 at 5% take aim of significance. Otherwise, do not reject the null hypothesis (Danao).In this particular tests, the result for BARC, VOD and FTALLSH show that we do not reject the null hypothesis that k = 0. But for the GSK graph, the result is opposite. We have necessary proof to reject the null hypothesis.Decision Rule If the absolute value of the ADF Test Statistic is less than the value of the McKinnon unfavorable Values at the chosen level of significance, then the series has a unit root and is therefore non-stationary.