Question
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?Solution
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.
What is the main objective of the “RBI Kehta hai” Campaign?
Which international collaboration achieved the first successful laser cooling of Positronium, a short-lived hydrogen-like atom?
Under Mission Amrit Sarovar, what is Indian Railways’ role in water conservation?
Consider the following statements:
1. The Ministry of Rural Development and the Ministry of MSME signed an SoI to support SHG women enterprises.<...
Which movie dominated the 30th Screen Actors Guild (SAG) Awards, winning three major awards?
Which OTT series won the first-ever OTT Award for Web Series at the 54th International Film Festival of India (IFFI)?
Who has won the 2022 UNHCR Nansen Refugee Award?
Who has been roped in as the ambassador of the Russian Film Festival in India?
Recently National Skill Development Corporation (NSDC) signed a MoU with which automobile company to train 18,000 students in three years?
Recently which of the following limited company announced to invest $1 billion in next five years to make its mining operations environment-friendly?