Last answered:

26 Jan 2024

Posted on:

06 Nov 2023


Stationary and non stationary determination

When we execute the DF test to check the stationarity for market value data sts.adfuller(df.market_value) we can not reject the null hypothesis due to the p value is .33 (higher than all signifince level), 
But we reject the null hypothesis with the returns data even if we got a higher p value (7.2) than the p value of FTSE prices 
Isn't there a contradiction in applying that method?

1 answers ( 0 marked as helpful)
Super learner
This user is a Super Learner. To become a Super Learner, you need to reach Level 8.
Posted on:

26 Jan 2024


Pay attention to the scientific notation behind it.

market_value: 0.33010893277028264

returns: 7.798058336040906e-24 -> which basically means 0 (zero)

therefore we reject null hypothesis.

and remember p-value range is between 0 and 1.

Submit an answer