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The Assumption of Normality in Time Series

sujithjay.com

1–4 of 4 posts

Re: The Assumption of Normality in Time Series

#3
post #2

I still do not see the complete picture. Why is the assumption of normality important? Other than to simplify the calculation of parameters in ARMA models.

The short answer is I don't know. However, the convenience of simplifying the calculations is, in my opinion, a win. Again, I am myself not convinced. Probably, my premise on the ubiquitousness of normality assumption on the residuals in ARMA models is itself flawed.

Re: The Assumption of Normality in Time Series

#4
post #3
post #2

I still do not see the complete picture. Why is the assumption of normality important? Other than to simplify the calculation of parameters in ARMA models.

The short answer is I don't know. However, the convenience of simplifying the calculations is, in my opinion, a win. Again, I am myself not convinced. Probably, my premise on the ubiquitousness of normality assumption on the residuals in ARMA models is itself flawed.

In a way, I am trying to link it with the central limit theorems. But, I may be woefully lost. I am just a novice in this.