us about the stationarity of the data and what conclusions can be drawn from them.
The report shows the results of 11 Augmented Dickey-Fuller (ADF) tests conducted on the month-wise demand for spare parts in Larsen and Toubro. The ADF test is a statistical test used to determine whether a time series is stationary or not. Stationarity is an important property of time series data as it allows for more accurate forecasting and analysis.
Each ADF test in the report has been conducted with the same criteria, including a Schwert criterion, a drift and trend, a lag of 10, and an alpha of 0.05. The report provides several key values for each test, including the tau-stat, tau-crit, whether the data is stationary or not, the AIC and BIC values, the number of lags, the coefficient, and the p-value.
The tau-stat is a measure of the test statistic, while the tau-crit is the critical value for the test. If the tau-stat is less than the tau-crit, then the data is considered stationary. Conversely, if the tau-stat is greater than the tau-crit, then the data is not stationary.
Based on the results of the ADF tests, it can be concluded that the month-wise demand for spare parts in Larsen and Toubro is stationary in tests 1, 3, 5, 7, 8, 10, and 11. These tests have tau-stats that are less than the tau-crit, and their p-values are less than 0.05, indicating that the null hypothesis of non-stationarity can be rejected.
On the other hand, tests 2, 4, 6, and 9 show that the data is not stationary. These tests have tau-stats that are greater than the tau-crit, and their p-values are greater than 0.05, indicating that the null hypothesis of non-stationarity cannot be rejected.
In conclusion, the report shows that the month-wise demand for spare parts in Larsen and Toubro is stationary in some cases and non-stationary in others. This suggests that further analysis is needed to determine the underlying factors that contribute to the non-stationarity of the data. Nonetheless, the results of the ADF tests provide valuable insights into the stationarity of the data, which can be used to improve forecasting and analysis.
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