Look at the following two graphs of residuals versus time, from a time series model. a) What
Fantastic news! We've Found the answer you've been seeking!
Question:
Look at the following two graphs of residuals versus time, from a time series model.
a) What kind of autocorrelation (positive or negative) do you see?
b) If the error εt at time t is modeled as, with ut a white noise series, write down the limits of ρ for the errors of each of the above two graphs.
c) What test do you suggest for detecting autocorrelation of the errors in point B above?
d) If the error εt at time t is modeled as , what test do you recommend for detecting autocorrelation?
e) Mention ONLY one consequence of the autocorrelation problem.
f) Mention a remedy to the problem of Autocorrelation.
Related Book For
Posted Date: