Autocorrelation in the residuals of a time series model refers to the correlation of the residuals (errors) at different time points. If there is high autocorrelation, it suggests that the residuals are not independent of each other and that the model has not adequately captured important patterns or information from the data. A good time series model, such as ARIMA, should ideally result in residuals with no significant autocorrelation, indicating that the model has accounted for all the systematic information in the data. High autocorrelation in residuals is a sign that the model should be re-evaluated or refined to capture those patterns. Why Other Options Are Incorrect: • A: High autocorrelation in residuals suggests that important patterns have not been captured, not that the model is perfect. • C: Autocorrelation is relevant for all types of time series data, including stationary data, as it helps ensure that the model is correctly specified. • D: Autocorrelation is crucial for models like ARIMA because it informs the structure of the model. Ignoring it can result in poor forecasting performance. • E: High autocorrelation does not necessarily lead to overfitting; it generally signals that the model is missing key information, not that it is overfitting.
The National Green Hydrogen Mission anticipates over Rs. Eight lakh crore in total investments and Creation of over Six lakh jobs by _____________.
Which of the following best describes the position of an investor who is under an obligation to buy the underlying asset in a futures position?
Within how many days of creation of charge on assets, is it needed to be registered with the RoC?
What is the name of the regulatory body that oversees the functioning of commodity futures trading in India?
In capital budgeting, the discount rate used in the net present value method is also known as:
The LTV allowed on loans against gold jewellery or gold loans is _____
Which nation is being aided by the Indian government to combat locusts, including the supply of 40,000 liters of Malathion, an environmentally friendly ...
What was the Foreign Exchange Earnings (FEE) for India in January-June 2024?
The introduction of the Standing Deposit Facility was recommended by ____ committee.
The RBI will develop a new interest rate benchmark based on secured money markets. Which of the following is the proposed new benchmark rate?