Which of the following forecasting methods is specifically designed to capture both autoregressive and moving average properties, often applied to non-stationary time series data?
ARIMA is a powerful forecasting method used for time series analysis, especially when the data is non-stationary. The AR (AutoRegressive) component accounts for the influence of past values on the current value, while the MA (Moving Average) component captures the dependency between an observation and a residual error. The “I” (Integrated) component makes the series stationary by differencing. This combination makes ARIMA flexible and suitable for various types of time series data, such as financial and economic data, where both autoregressive and moving average processes are relevant. Option A (Exponential Smoothing) is incorrect as it focuses on smoothing time series data, not on combining autoregressive and moving average features. Option B (Moving Average) is incorrect because it averages out short-term fluctuations but lacks an autoregressive component. Option C (Seasonal Decomposition) is incorrect as it decomposes a series without modeling dependencies. Option E (Linear Regression) is incorrect because it assumes a linear relationship and doesn’t account for time-lagged dependencies.
Under Pradhan Mantri Gram Sadak Yojana, Union Government bears ____% of the project cost in respect of projects sanctioned in North-Eastern and Himalaya...
India's company HealthKart’s MuscleBlaze signs whom as brand ambassador?
Who unveiled the mascot 'Juhi' for the Jharkhand Women’s Asian Champions Trophy Ranchi 2023, and what is the inspiration behind the mascot?
The 40th edition of "Hunar Haat", a platform to preserve, protect and promote local artisans and craftsmen, was inaugurated by the Union minister Anurag...
Recently the central government launches 3 schemes to strengthen MSMEs in pharmaceutical sector, who will be the project management consultant for impl...
How much of India’s total gold reserve is now held domestically, as per RBI’s recent data?
Badri Narayan received the prestigious literary award Sahitya Akademi Award, 2022 for ?
Consider the following statements:
I. India's first-ever National Air Sports Policy-2022 has been launched by Sports Authority of India.
<...Deanna Syme Tewari, who passed away recently, was known for her achievements in which field?
RBI has extended the deadline for non-banking financial companies (NBFCs) to comply with new Non-Performing Assets (NPAs) classification norms to Septem...