search for: training_matrix

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2010 Feb 07
1
Out-of-sample prediction with VAR
...#39;t it at least predict just as well as the simple AR(3) by finding that the extra variables have no added value? My code: ts_Y <- ts(log_residuals[1:104]); # detrended sales data ts_XGG <- ts(salesmodeldata$gtrends_global[1:104]); ts_XGL <- ts(salesmodeldata$gtrends_local[1:104]); training_matrix <- data.frame(ts_Y, ts_XGG, ts_XGL); ### Try VAR(3) var_model <- VAR (y=training_matrix, p=3, type="both", season=NULL, exogen=NULL, lag.max=NULL); ## Out of sample forecasting var.lm = lm(var_model$varresult$ts_Y); # the generated LM ts_Y <- ts(log_residuals[105:155]...