Augmented Dickey Fuller Test
Posted: Tue Mar 10, 2015 7:01 pm
I am a bit confused about ADF test. Do we need to check for serial correlation before implementing the ADF test. And secondly, when I do the ADF test, the durbin-watson stat is approximately 1.86. Is this too low and if it is too low, does this make the adf test unreliable ? Thanks for replies in advance !!