- With The Data Shown Temperatures On The Planet Venus Construct A New Series By Taking Logarithms Test The Null Hypoth 1 (29.9 KiB) Viewed 55 times
With the data shown (temperatures on the planet Venus), construct a new series by taking logarithms Test the null hypothesis that the new series is a random walk against the alternative that it is AR(1) To do this, set up a restricted model, and an unrestricted model As a hint: restricted Alog(Vd) = A +e unrestricted log(Vc)= A + Blog(Vt-1)+ e Use an F-test with 5% significance; I provide the critical value below restricted sum of sq'd errors unrestrictd sum of sq'd errors F-test statistic F-test critical value result of test 25 "reject" or "cannot reject" Venus temp Log Diff 176.000000 176.050573 176.596676 177.355786 178.483245 179.549004 180.850368 181.164863