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Arima Model with monthly dataset

Posted: Sun Sep 13, 2009 6:30 am
by bissy
Hi everyone,
Can you please help me with this question.
I have a dataset of rubber prices in months from Jan 2004 to Apr 2009. When my teacher estimated to choose the best ARIMA model, i saw him use this fucntion
ls dlnprice ar(1) ar(5) ar(6) ar(15) ma(1) ma(5) ma(14) @expand(@month)
Would you please tell me the role of @expand(@month) in this fucntion
Many thanks!!

Re: Arima Model with monthly dataset

Posted: Sun Sep 13, 2009 7:04 am
by trubador
It creates a dummy variable for each month. Therefore you'll have 12 dummy variables generated to capture the seasonality effect.