..choosing optimal lag for a model is an empirical issue! What is your opinion?

01 January 1970 1 10K Report

Although decision on this can be guided by the rule-of-thumb that says you choose the model that gives the lowest values among the criteria (i.e. Akaike, Schwarz, etc).

Olumide Adesina

The rule of thumb is somewhat sufficient. Some software will not return any value(s) if a wrong lag is chosen. So, it's important to be rightly guided.

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