Unit Root Test
{"Image DocumentName": "Unit Root Test", "Image ImageDescription": "With the AR(1) model, the characteristic equation of (1-z)= 0, suggests that it has a root of z = 1. This lies on the unit circle, rather than outside it, so we conclude that it is non-stationary. As we increase the lags in the AR model, so the potential number of roots increases, so for 2 lags, we have a quadratic equation producing 2 roots, for the model to be stationary, they both need to lie outside the unit circle.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}