Model Intercepts
Why is a constant \(c\) sometimes added to AR, MA, ARMA or ARIMA models?
Answer
We sometimes include an intercept/constant \(c\) to allow the time-series to have a nonzero mean (or constant drift). More on this in the future.
Why is a constant \(c\) sometimes added to AR, MA, ARMA or ARIMA models?
We sometimes include an intercept/constant \(c\) to allow the time-series to have a nonzero mean (or constant drift). More on this in the future.