About this question
Easy · time_series · Quant Researcher interview question · time-series, statistics, hypothesis-testing, ols, stationarity
The Augmented Dickey-Fuller (ADF) test is a statistical procedure used to test for a unit root in a time series, which indicates non-stationarity. In quantitative finance, establishing stationarity is a crucial prerequisite for building mean-reversion models, pairs trading strategies, and valid OLS factor models. This test extends the standard Dickey-Fuller test by including lagged differences of the series to account for serial correlation. Task Implement the function solution(prices: list, k: