September 2012
Intermediate to advanced
286 pages
8h 7m
English
Content preview from Statistical Methods in Customer Relationship ManagementBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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C.1 Unit-Root Testing: Are Performance and Marketing Variables Stable or Evolving?
The distinction between stability and evolution is formalized through the unit-root concept. Here, a simple case where the behavior over time of the variable of interest (e.g., a brand's sales 
) is described by a first-order autoregressive process:
where 
is an autoregressive parameter, 
the lag operator (i.e., 
), 
a residual series of zero-mean, constant-variance 
, and uncorrelated random shocks, and 
a constant. Note that Equation (C.1) may also be written in the more familiar form
(C.2) 
which corresponds ...
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