Exercise

Model choice - II

In the previous exercise, you fit three different models to the logged and differenced varve series (dl_varve). The data are displayed. The extracted AIC and BIC from each run are tabled below.

Model | AIC | BIC

-------|-----------|----------- MA(1) | -0.4437 | -1.4366 MA(2) | -0.4659 | -1.4518 ARMA(1,1) | -0.4702 | -1.4561

Using the table, indicate which statement below is FALSE.

Instructions

50 XP

Possible answers

AIC and BIC both prefer the ARMA(1,1) model over the other fitted models.

AIC prefers the MA(1) model.

BIC prefers the MA(2) over the MA(1)

Because they use different penalties, the AIC and BIC can prefer different models.

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Instructions

Possible answers

Exercise