Hei guys i am new to this augmented dickey fuller test … i just am wondering how do u formalize your hypothesis … with 6 lags model… i get a (1)Augmented dickey fuller value (Test Value) (2) Critical value = Level 1% , 5 % , 10 % (3) Probability value is 0.00000 On what basis do i accept , or reject hypothesis ? any ideas … thnks
based on the tabulated critical values by mackinnon 1996 and 1991. should be the critical values you obtain… don’t know what prog you’re using but eviews or matlab are quite a fit for that. cheers