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Why Should Augmented Dickey-Fuller Tests Always Be Used When Performing ρ\rho

Question 4

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Why should augmented Dickey-Fuller tests always be used when performing econometric analysis?


A) the augmented tests allow for more degrees of freedom
B) so we can test hypotheses using a t-distribution
C) since no assumptions about the sign of ρ\rho are needed to perform a one-tailed test
D) to confirm that error terms are not autocorrelated

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