ryanlb

bpdulog Wrote:
-------------------------------------------------------
> Your first equation is a random walk, which is a
> special type of unit root.
>
> If the coefficient is .936 then it is not a unit
> root by definition, using the b0 / (1-b1)
> equation.
>
> Depends on what data is presented. If quarterly,
> we use AR(4). If monthly, we use AR(12).
>
> DW test cannot be used on an AR model. You have to
> check if any of the lagged variables are
> statistically significant. If they are, then you
> have a problem.


you're on fire