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If the first-order autoregressive coefficient is switching between two regimes, one that is stationary and the other nonstationary (or near unit root), then linear testing procedures will have difficulties detecting the mean reversion of the process. We used the heterogeneous first-order autoregressive structure because it was in accordance with the observed unrestricted covariance matrix and maximized the fit measures. A first-order autoregressive model was used for covariance structure of the individual diapers within brand despite the fact that sampling times were not equally spaced, because it fit most of the sample correlations for the data well. |
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