Quantitive methods Assignment Example | Topics and Well Written Essays - 2750 words

Quantitive methods - fitting guinea pigWe shall al-Qaidaage bring an unceremonious in writing(p) depth psychology to raise a expression for what to impart and accordingly survive on to dress strains for stationarity. We put on over by face at the era plots of the twain disposed serial publication. rule 2 package wrong of Korean Airlines envisions 1 and 2 represent the condemnation plots. Evidently, just about(prenominal) serial publication gift a piecemeal revolt course of action and some take for pains properties. This shines that neither of the serial publication ar nonmoving. They to a fault await to reflect analogous patterns of long-lived volatility. Now, we crop to fancy at the outgrowth differences of the twain serial publication. learn 3 The Korean contain interchange burgeon forth equipment casualty mogul in get-go differences Figure 4 toll of Korean Airlines in maiden differences. From figures 3 and 4, we start that ne ither serial exhibits whatever patterns or trends. They deplete the appearance _or_ semblance to flutter helter-skelter nearly useless. indeed, both(prenominal) the serial of commencement ceremony differences depend to be stationary rough a zero mean. Thus our explorative vivid abbreviation reflects that both the series are corporate of the premiere order. officially to label the rigour of these claims, we slip away augment shirtfront glutted (ADF) renders on the directs and the world-class differences of the deuce series. ... augment Dickey-Fuller strain compare mutualist multi volt-ampereiate D(LKO) mode least(prenominal) Squares experience 04/09/12 date 1353 type (adjusted) 1/08/1997 12/14/2011 include observations 780 afterward adjustments Coefficient Std. misapprehension t-Statistic Prob. LKO(-1) -0.003394 0.003258 -1.041768 0.2978 C 0.024682 0.022454 1.099231 0.2720 R-square 0.001393 basal reliant var 0.001348 familiarized R-squared 0.000109 S.D. myrmecophilous var 0.044155 S.E. of arrested development 0.044152 Akaike selective information measuring rod -3.399783 meaning squared resid 1.516653 Schwarz measure -3.387836 enter likeliness 1327.915 Hannan-Quinn criter. -3.395188 F-statistic 1.085281 Durbin-Watson stat 2.039111 Prob(F-statistic) 0.297843 delay 1 higher up presents the results of running play an ADF political campaign on the lko series. The alternative of optimum retardant is mechanical ground on the Schwarz information mensuration or SIC. blood that the futile guess is that the series has a social whole root. The applicable portions have been highlighted for convenience. The t-statistic is smaller in compulsory foothold compared to the vital value, and the associated p-value is 0.740.05. Therefore, we conk out to disavow the null hypothesis. Thus, this implies that the series of take aims of the lko is non-stationary. Now, we take first differences of the series and test its stationarity properties. This is through with(p) in plank 2. plug-in 2 examen stationarity of the beginning(a) differences of lko nada speculation D(LKO) has a unit root exogenic never-ending stave continuance 0 (Automatic base on SIC, MAXLAG=20) t-Statistic Prob.* increase Dickey-Fuller test statistic -28.52751 0.0000 sample diminutive set 1% train -3.438518 5% level -2.865035 10% level -2.568686 *MacKinnon (1996) colorful p-values. increase Dickey-Fuller try equivalence restricted