Apply the augmented Dickey–Fuller test to the levels of Lake Huron data (LAKE.TSM). Perform two analyses assuming AR(1) and AR(2) models. but instead of differencing, apply the classical decomposition...


Apply the augmented Dickey–Fuller test to the levels of Lake Huron data (LAKE.TSM). Perform two analyses assuming AR(1) and AR(2) models. but instead of differencing, apply the classical decomposition method to the logarithms of the data in ASHORT.TSM by deseasonalizing, subtracting a quadratic trend, and then finding an appropriate ARMA model for the residuals.



May 25, 2022
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