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Question: autoregressive model suppose that z1 22 is a time series...

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Auto-regressive model. Suppose that z1, 22,... is a time series, with the number 2t giving the value in period or time t. For example 2t could be the gross sales at a particular store on day t. An auto-regressive (AR) model is used to predict from the previous M values, Zt, Zt-1, , 2t-M+1: Here zt-1 denotes the AR models prediction of zt+1, M is the memory length of the AR model, and the M-vector β is the AR model coefficient vector. For this problem we will assume that the time period is daily, and M - 10. Thus, the AR model predicts tomorrows value, given the values over the last 10 days. For each of the following cases, give a short interpretation or description of the AR model in English, without referring to mathematical concepts like vectors, inner product, and so on. You can use words like vesterday or todav (d) β 0.5e1 0.5e2.

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