The Cholesky Decomposition Algorithm and ARMA Modeling.
Abstract
The history of the use of the Cholesky decomposition in the estimation and prediction of autoregressive moving average time series is reviewed and a modification of Ansley's (1979) estimation method is suggested. This modification is motivated by the results of Newton and Pagano (1981) in prediction theory and results in a significant reduction in the calculations required to evaluate the exact likelihood. It is also shown how the modified method can be used to obtain predictors and prediction variances. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1981
- Accession Number
- ADA116249
Entities
People
- H. Joseph Newton
- Marcello Pagano
Organizations
- Texas A&M University