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We want to test whether Ï is equal to 1. Subtracting yt-1 from both sides, we can rewrite the AR(1) model as: And now a test of Ï =1 is a simple t-test of whether the parameter o,In this case in your Dickey-Fuller unit root tests you will need to take the differences of the log of the series rather than just the differences of the series./er test that a variable follows a unit-root process. The null hypothesis is that the variable contains a unit root, and the alternative is tha. the variable was generated by a stat