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A) Given the Eviews Printout Below, Did the Chicken Come

Question 3

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A) Given the Eviews printout below, did the chicken come before the egg? Explain how you know.
Pairwise Granger Causality Tests
Sample: 19511994
Lags: 2
 Nul1 Hypothesis:  Obs  F-Statistic  Probability  CHICK does not Granger Cause EGG 4212.554610.17900 EGG does not Granger Cause CHICK 0.098490.04644\begin{array}{lccc}\hline \hline \text { Nul1 Hypothesis: } & \text { Obs } & \text { F-Statistic } & \text { Probability } \\\hline \hline \text { CHICK does not Granger Cause EGG } & 42 & 12.55461 & 0.17900 \\\text { EGG does not Granger Cause CHICK } & & 0.09849 & 0.04644 \\\hline\end{array}
B) Are the first differences of M1 (FDM1) stationary? Using the Eviews printout below, show the 5-step procedure.  ADF Test Statistic 0.6150771% Critical Value* 3.76675% Critical Value 3.003810% Critical Value 2.6417 Unit root test on FDM1. \begin{array}{l}\begin{array} { l l l l } \text { ADF Test Statistic } & - 0.615077 & 1 \% \text { Critical Value* } & - 3.7667 \\&& 5 \% \text { Critical Value } & - 3.0038 \\&& 10 \% \text { Critical Value } & - 2.6417 \\\hline \hline\end{array}\\\text { Unit root test on FDM1. }\end{array}

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