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Unformatted text preview: We want to see if my yt is doing anything • Look at the tstat for y(t2) if not significant, then leave it out • Look at the adjust R^2 (the R^2 for use between models) between the 1 st order autoregressive model and the 2 nd order autoregressive model. Autoregressive models are often used in forecasting because you can just use yt and y(t+1) [one period into the future] • Problem with these models: they are not theoretical they do well in forecasting values when values do not change...
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 Spring '09
 Casler
 Regression Analysis, Autoregressive moving average model, Autoregressive model, autoregressive, Order Autoregressive Model

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