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Applied Econimic. Business & Marketing Assignment.
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Why study linear time series models?
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Applied Economics
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Applied Economics
A time series refers to a set of data points recorded in time order. It is a sequence in which time data is taken at sequential equally spaced sections of an event. Time series plays a significant role in guiding the analysis of different forms of data for meaningful conclusions. Therefore, studying the linear time series helps learners better understand the more sophisticated financial and economic models and utilize these models to interpret business and economic trends.
A linear time series is an instance where, for every data point Xt, the specific data point can be treated as a linear combination of the past or future data or figures' differences. Analysis of this series provides a natural framework used in the exploration of the dynamic structure of a time series (Tsay, 2010). For example, characteristic roots, which refer to the inverse of two solutio...
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