Consider again the US monthly leading index of question 2. This time use B-splines and smooth splines

Question:

Consider again the US monthly leading index of question 2. This time use B-splines and smooth splines to explore the dependence of xt on xt−6. Show the scatter plot of xt versus xt−6 with fitted lines via B-splines and smooth splines. Is the relationship nonlinear? Why?

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Related Book For  book-img-for-question

Nonlinear Time Series Analysis

ISBN: 9781119264057

1st Edition

Authors: Ruey S. Tsay, Rong Chen

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