October 2014
Beginner to intermediate
348 pages
6h 55m
English
Content preview from Python Data Analysis
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Autoregressive models
An autoregressive model can be used to represent a time series with the goal of forecasting future values. In such a model, a variable is assumed to depend on its previous values. The relation is also assumed to be linear and we are required to fit the data in order to find the parameters of the data.
Note
The mathematical formula for the autoregressive model is as follows:
In the preceding formula, c is a constant and the last term is a random component also known as white noise.
This presents us with the very common problem of linear regression. For practical reasons, it's important to keep the model simple and only involve necessary ...
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