If there is no obvious trend or seasonality in the time series data,and we believe that there is a correlation between consecutive residuals,the autoregressive model may be most effective as a forecasting technique.

Question

Quizplus · Accepted Answer

The autoregressive model is designed to capture the correlation between consecutive residuals, and it can be effective in cases where there is no obvious trend or seasonality in the time series data. Therefore, the statement is true.

If There Is No Obvious Trend or Seasonality in the Time