An ARMA(1,1) model of D.WPI is estimated. To understand the adequacy of the fitted model, both...

 

Transcribed Image Text:

An ARMA(1,1) model of D.WPI is estimated. To understand the adequacy of the fitted model, both stability and Portmanteau test results are reported below. Please comments on them and explain whether the model is adequate? (5 points) Inverse roots of ARMA polynomials tube, 9 Real AR roots o MA roots Portmanteau test for white noise Portmanteau (Q) statistic = Prob chi2 (40) = 158.1730 0.0000 An ARMA(1,1) model of D.WPI is estimated. To understand the adequacy of the fitted model, both stability and Portmanteau test results are reported below. Please comments on them and explain whether the model is adequate? (5 points) Inverse roots of ARMA polynomials tube, 9 Real AR roots o MA roots Portmanteau test for white noise Portmanteau (Q) statistic = Prob chi2 (40) = 158.1730 0.0000