The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 6 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Estimating ρ: The Hildreth-Lu scanning or search procedure.† Since in the first-order autoregressive scheme
![]()
ρ is expected to lie between −1 and +1, Hildreth and Lu suggest a systematic “scanning’’ or search procedure to locate it. They recommend selecting ρ between −1 and +1 using, say, 0.1 unit intervals and transforming the data by the generalized difference equation (12.6.5). Thus, one may choose ρ from −0.9, −0.8, ... , 0.8, 0.9. For each chosen ρ we run the generalized difference equation and obtain the associated RSS: Σ
. Hildreth and Lu suggest choosing that ρ which minimizes the RSS (hence maximizing the R2). If further refinement is needed, they suggest using smaller unit intervals, say, 0.01 unit such as −0.99, −0.98, ... , 0.90, 0.91, and so on.
a. What are the advantages of the Hildreth–Lu procedure?
b. How does one know that the ρ value ultimately chosen to transform the data will, in fact, guarantee minimum Σ
.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------