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Augmented Dickey-Fuller Test - Need Urgent Help!

Posted: Sun Apr 25, 2010 1:29 am
by Ausland2011
Hello,

In testing a variable for non-stationarity, I am not sure whether in the list of options of the ADF test I can drop the intercept in case it is not statistically significant (assuming the trend is already non significant). Therefore, in this case, I would select "none" in the list of options. Is this a correct procedure? Could anyone help me with this?

Thank you very much!

Re: Augmented Dickey-Fuller Test - Need Urgent Help!

Posted: Wed Apr 28, 2010 5:24 am
by random_access
hi there
i advice u to run the intercept and the trend since of time series data have either one of them if not both.
all the best