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Why would there emphasis on how we determine how many lags of the dependent variable and error are included in a (time series decomposition) model?

Why would there emphasis on how we determine how many lags of the dependent variable and error are included in a (time series decomposition) model? (Reference: Statistics and Forecasting Methods)

Please help me understand as well as what type of resources such as articles, websites or books, you found this information and I could find more information on this topic.

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