Question
Differentiate between the autoregressive and moving average models of time series.
Answer :
Word Count : 140
| Feature | Autoregressive (AR) Model | Moving Average (MA) Model |
|---|---|---|
| Definition | A model where the current value of the series depends linearly on its own previous values (lags) and a random error term. | A model where the current value of the series depends linearly on past random error terms (shocks). |
| Dependence | Depends on past values of the series. | Depends on past error terms. |
| Order | Denoted as AR(p), where _______ __________ __________ __________ ____ ___ _______ ______ ______ _______ ___. ______ ________ ______ ________ _____ _______ _________ ___ _______ ________ ___. ________ _______ ________ _______ ____ ___ _________ __________ ____ __________ _______ _______. _________ _______ ___ _________ _________ ___ ____ _______ ______ _______. ___ ____ __________ ________ _______ ____ ______ __________ _______ ____ _______ ________. _____ __________ ______ ________ __________ _______ __________. ____ ____ _______ __________ ____ _____ _____ ________ _____ _______. ____ _____ ______ _________ ________ _____ ___. ______ ________ _________ ____. IGNOU ACADEMY Your IGNOU journey, made easier.
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