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Future Business Journal

Table 7 Summary of the Linearity Tests Performed on CPI

From: Modeling inflation rate factors on present consumption price index in Ethiopia: threshold autoregressive models approach

Likelihood Ratio Test

Test Statistic

P value

Order

Decision

No Threshold Linearity

44.207

 < 0.001

11

No threshold linearity, rejected

Threshold Nonlinearity

35.140

 < 0.001

11

Threshold nonlinearity, not rejected

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