I Consider the graph shown in Fig. 15-15. Denote the tree made up of b 6, bs, and b, by t (a)Find all the fundamental loops of this graph corresponding to T (b) Find all the fundamental cutsets of this graph corresponding to t (c) Write the incidence matrix of this graph choose n 4 as the datum
Testing for Unit roots Consider an AR(1): y=a+p +e,t Let Ho: p=1, (assume there is a unit root) Define 0=p-1 and subtract y, from both sides to obtain Ay,=a+ B+e, Unfortunately, a simple t-test is inappropriate, since this is an I(1) process ADickey-Fuller Test uses the t-statistic, but different critical values Economics 20- Prof anderson