You want to determine whether or not the unemployment rate for the United States has a
stochastic trend using the Augmented Dickey Fuller Test (ADF).The BIC suggests using
3 lags, while the AIC suggests 4 lags.
(a)Which of the two will you use for your choice of the optimal lag length?

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The Answer of You want to determine whether or not the unemployment rate for the United States has a
stochastic trend using the Augmented Dickey Fuller Test (ADF).The BIC suggests using
3 lags, while the AIC suggests 4 lags.
(a)Which of the two will you use for your choice of the optimal lag length?

You Want to Determine Whether or Not the Unemployment Rate