Figure 2
A line graph displays the cumulative sum of squares of the recursive residuals. The x-axis ranges from 12 to 23, and the y-axis ranges from negative 0.4 to 1.4. The blue line represents the cumulative sum of squares, which generally trends upward with some fluctuations. Two dotted orange lines represent the critical bounds at the 5 percentage significance level, forming a funnel shape that widens as the x-axis values increase. The cumulative sum of squares line stays within these bounds for most of the range but approaches the upper bound towards the end of the graph. All values are approximated.CUSUM of squares: Plot of the cumulative sum of squares of the recursive residuals. Note: The straight lines represent the critical bounds at the 5% significance level. Source(s): Authors' calculations; created by authors