Hi guys
Could anyone please help me to re-write the following ARMA model into an equation? i.e. I am struggling how to use the AR, MA parameter values?
Does AR(1) in Eviews mean "Investment(-1)" and AR(2) is "Investment(-2)? I tried to find the answer by reading the manual but couldn't figure it out.
Thank you very much.
Daniel
Investment= C(1)*FINANCE(-2) + [AR(1)=C(2),AR(2)=C(3),MA(1)=C(4)]
Investment= 0.36*FINANCE(-2) + [AR(1)=0.2623,AR(2)=0.3905,MA(1)=0.9721]
ARMA Model Interpretation
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