A Researcher Would Like to Test for a Unit Root

question 13

Multiple Choice

A researcher would like to test for a unit root in a series. She runs the regression . What should her null hypothesis be assuming that she adopts the Dickey-Fuller test approach?

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Definitions:

Face Validity

The degree to which an assessment or test appears to measure what it is intended to measure, based on subjective judgment.

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, testing how well one measure predicts an outcome for another measure.

Construct Validity

The extent to which a test measures what it claims to be measuring.

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically the ability of a measurement tool to actually measure the theoretical construct it intends to measure.