Gate 4: Johansen as a Rank Score

Which of these is Johansen allowed to do in this course?

• Admit a pair that failed FDR, if its rank is 1
• Reject a pair that passed every hard gate, if its rank is 0
• Add a note to the pair's record that flags it for review

In a two-series Johansen output, why are the r ≤ 1 numbers the same in the trace and maximum-eigenvalue columns?

• Because statsmodels copies one column into the other by mistake
• Because with two series, "at most 1 relation against more" and "exactly 1 against 2" are the same test
• Because both columns always give the same rank