2. If the errors from the regression appear to be non- stationary, and dierencing appears appropriate, then
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2. If the errors from the regression appear to be non-
stationary, and di®erencing appears appropriate, then di®erence the forecast variable and all explanatory vari-
ables. Then ¯t the model using the same proxy model for errors, this time using di®erenced variables.
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Related Book For
Forecasting Methods And Applications
ISBN: 9780471532330
3rd Edition
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
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