ARDL Bound Check

Problem

Interpret an ARDL bounds test for cointegration. Return "reject" when the F statistic exceeds the upper bound (cointegration), "accept" when it is below the lower bound (no cointegration), and "inconclusive" in between.

Comparisons are strict.

Hint

The inconclusive region is why bounds testing needs a follow-up test.

Test cases

case 1

in: [5,3,4]

expected: "reject"

case 2

in: [2,3,4]

expected: "accept"

case 3

in: [3.5,3,4]

expected: "inconclusive"

case 4

in: [4,4,4]

expected: "inconclusive"

Starter codePython

def ardl_bound_check(f_stat, lower_bound, upper_bound):
    # Your code here
    pass

4 test cases · run your code against them in the editor