(d) Fit the two models and nd the coecients, and residual variance in each case. For the...
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(d) Fit the two models and ¯nd the coe±cients, and residual variance in each case. For the ¯rst model, use (5.15) to estimate the residual variance. But for the second model, because there are four parameters, the residual degrees of freedom is n ¡ 4. So the residual variance ¾2
" can be estimated using the following equation (similar to (5.15))
s2e
=
1 n ¡ 4 Xn i=1 e2i
:
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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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