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2011 Jul 07
1
Discussion on time series analysis and the use and misuse of Differencing
How does the R module ARIMA account for unspecified deterministic structure such as seasonal pulses, level shifts, local time trends and regular pulses without needing to ask the user to intervene to specify this? I have attached a Makradakis paper which hammers Box-Jenkins approach to this problem of nonstationarity. I have also included a recent discussion from stackexchange which you might find even more interesting. http://stats.stackexchange.com/questions/12651/box-jenkins-model-selection/12662#12662 http://www.insead.edu/facul...