Ar(1) vs Y_t-1
Posted: Tue Aug 02, 2011 7:58 am
Hello:
What are the advantages of assuming that the residuals follow an ar(1) process instead of the original series on a model? I have constructed models with an ar(1) term but the correlogram still blows up. what can i do?
What are the advantages of assuming that the residuals follow an ar(1) process instead of the original series on a model? I have constructed models with an ar(1) term but the correlogram still blows up. what can i do?