A time series data set is plotted in the top panel of Figure 2. Its sample autoc

Question

A time series data set is plotted in the top panel of Figure 2. Its sample autocorrelation and partial autocorrelation functions are plotted in the middle and bottom panels of Figure 2 respectively. For each of the following models given by their R functions, provide reasons for using or not using that model for this dataset: arima(dataset, order = c(0, 0, 7)) arima(dataset, order = c(0, 0, 1), seasonal = list(order = c(0, 0, 1), period = 6)) arima(dataset, order = c(0, 1, 1), seasonal = list(order = c(0, 1, 1), period =6))

Explanation / Answer

Clearly, using an I-MR chart with autocorrelated data can lead to problems, so it would be helpful to know if the data are autocorrelated.

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