Evaluate the likelihood of linear model with errors from an AR order 1 process

Evaluate the likelihood of linear model with errors from an AR order 1 process

Usage

likelihood_ar1(rho, dataf, hypothesis = "null")

Arguments

rho

Numeric scalar. Autoregressive parameter

dataf

Data frame. (nx2). Defining xt and yt values

hypothesis

Character string. "null" or "alt" determines whether to evaluate under the null or alternative hypothesis. "null" fixes linear component, beta = 0.

Value

likelihod value