The manager of a shipping yard wants to study the amount of cargo that is transported. The manager uses the partial autocorrelation function to determine which terms to include in an ARIMA model.
- Open the sample data, Shipping.MTW.
- Choose .
- In Series, enter Weight.
- Click OK.
Interpret the results
This graph shows that a significant correlation occurs at lag 1 and is followed by correlations that are not significant. This result indicates that the manager should include an autoregressive term or order 1 in the ARIMA model.
