'How to explain KPSS test ( For test Stationarity) based on p value or KPSS value
What would be Null and alternated hypothesis?
KPSS Test for Level Stationarity
data: Returns KPSS Level = 0.072065, Truncation lag parameter = 2, p-value = 0.1
Warning message: In kpss.test(Returns) : p-value greater than printed p-value
Solution 1:[1]
"In econometrics, Kwiatkowski–Phillips–Schmidt–Shin (KPSS) tests are used for testing a null hypothesis that an observable time series is stationary around a deterministic trend (i.e. trend-stationary) against the alternative of a unit root."
Solution 2:[2]
TLDR: for kpss if p value is large (more than 1 percent or 5 percent ) series is stationary
I assume u have used R language to get this result . In kpss.test ,
H0 = series is stationary HA = series is not stationary
for the given values p value is 10% so we cannot reject H0 at both 5% and 1% significance levels
Sources
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Source: Stack Overflow
| Solution | Source |
|---|---|
| Solution 1 | Troy D |
| Solution 2 | Mohit Burkule |