Question

In an arma(p,q) series , what do p and q represent ?

Answer 1

Arma model is a tool for understanding and predicting future values in Arma series.

It consists of two parts namely :

1.) The auto regressive part.

2.) The moving average part.

The model is usually referred to as ARMA (p, q) model.

Where :

p = The order of the auto regressive part.

q = The order of the moving average part.

Answer 2

Answer: Its Lag Terms