When I ran ADF test with my data set, I got following results. I am confused about why "alternative hypothesis" is always (even for real non-stationary series) showing as "stationary"?
Augmented Dickey-Fuller Test data: stlts Dickey-Fuller = -10.717, Lag order = 0, p-value = 0.01 alternative hypothesis: stationary Warning message: In adf.test(stlts, k = 0) : p-value smaller than printed p-value
When I looked at R code, it seems alternative is by default "stationary", I am really confused on why "alternative hypothesis", if it is always considered as "stationary" (or) I might misunderstood r implementation with other literature available online?
I understood that "unit root" doesn't guarantee "stationary" and I am not worried about it at this point. I want to make sure we are interpreting ADF results properly.
Thanks for your time and help!