Table1: Normal distribution testing: Jarque-Beta Test
Jarque-Beta Skewness Kurtosis Probability
4.242778 -0.128521 5.241710 0.119865
The estimation of Jarque-Beta Test is 4.242778 and probability is 0.119865. Probability is more than the Significance level at 10%. We cannot reject the null hypothesis( H_0). Therefore, the error term (ui) is normally distributed.
If uiis normally distributed, then Yi is also normally distributed since Yi is a function of ui.
Stationary, unit root testing
Determination
H_0: y_t~I(1) y_t process is nonstationary
H_1: y_t~I(0) y_t process is stationary
Significance level at 1 percent 0.01
5 percent 0.05
10 percent 0.10