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ChiSquareLamb91
ChiSquareLamb91
Level I

Transfer Function

Created: Mar 18, 2023 07:15 PM  |  Last Modified: Jun 8, 2023 9:27 AM (2106 views)

Newbie here.. I am struggling to teach myself how to run a transfer model. I am trying to run a transfer function for sales with temperature being the input variable. 

ChiSquareLamb91_0-1679181276142.pngChiSquareLamb91_0-1679181276142.png

 

After prewhitening the data- I have found lags at 5, 6, and 8. 

ChiSquareLamb91_1-1679181328099.pngChiSquareLamb91_1-1679181328099.png

 

I am stuck on how to continue from here. Thank you for any help you may be able to provide. 

 

SalesWeatherMonthlyData03.01.23.xlsx
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peng_liu
peng_liu
Level VII

Re: Transfer Function

Mar 23, 2023 11:34 PM (2059 views)  |  Posted in reply to message from ChiSquareLamb91 03-18-2023

Please check out this reference Time Series Analysis Any edition should be fine.

Look for the chapter on transfer function models. Pay attention to the discussion regarding prewhitening and impulse response. Look for a figure listing some examples of impulse response functions in that chapter.

Your plot here does not resemble an obvious pattern, so maybe you need to fit a bunch of different orders to find out the most appropriate one.

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