Consider the following information for a set of three ARMA models: ARMA(1,0), ARMA(1,1) and ARMA(3,2).AIC1-4.2041-6.8192-6.847Based on this, how would you proceed with model specification?O a. Eliminate the ARMA(1,0) because it has a clearly inferior fit versus parsimony tradeoff according to the AIC.Ob.Choose the ARMA(3,2) only because it has the best fit versus parsimony tradeoff according to the AIC.O C. Choose the ARMA(1,1) only because it has a better fit than the ARMA(1,0) but it is more parsimonious than the ARMA(3,2).Od.Eliminate all the models in this set because they have a negative AIC value.3.

AIC Values: AIC values are used for identifying the best fit of the model by comparing the other…

Answered: Consider the following information for…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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