Consider the following information for a set of three ARMA models: ARMA(1,0), ARMA(1,1) and ARMA(3,2). AIC 1 -4.204 1 1 -6.819 -6.847 Based on this, how would you proceed with model specification? O a. Eliminate the ARMA(1,0) because it has a clearly inferior fit versus parsimony tradeoff according to the AIC. O D. Choose the ARMA(3.2) only because it has the best fit versus parsimony tradeoff according to the AlC. 3.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
100%
Consider the following information for a set of three ARMA models: ARMA(1,0), ARMA(1,1) and ARMA(3,2).
AIC
1
-4.204
1
-6.819
2
-6.847
Based on this, how would you proceed with model specification?
O a. Eliminate the ARMA(1,0) because it has a clearly inferior fit versus parsimony tradeoff according to the AIC.
Ob.
Choose the ARMA(3,2) only because it has the best fit versus parsimony tradeoff according to the AIC.
O C. Choose the ARMA(1,1) only because it has a better fit than the ARMA(1,0) but it is more parsimonious than the ARMA(3,2).
Od.
Eliminate all the models in this set because they have a negative AIC value.
3.
Transcribed Image Text:Consider the following information for a set of three ARMA models: ARMA(1,0), ARMA(1,1) and ARMA(3,2). AIC 1 -4.204 1 -6.819 2 -6.847 Based on this, how would you proceed with model specification? O a. Eliminate the ARMA(1,0) because it has a clearly inferior fit versus parsimony tradeoff according to the AIC. Ob. Choose the ARMA(3,2) only because it has the best fit versus parsimony tradeoff according to the AIC. O C. Choose the ARMA(1,1) only because it has a better fit than the ARMA(1,0) but it is more parsimonious than the ARMA(3,2). Od. Eliminate all the models in this set because they have a negative AIC value. 3.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman