Dear all,
Portmanteau testing for randomness........
I'm thinking that you might read
p 310 Brockwell & Davis
p 111-112 Kendall and Ord
p 153 Cryer.
 
Q testing is fairly primitive. Considered by many to be unreliable.
But its your choice
 
Dr RJF Hudson Qld Australia
rjfhud@powerup.com.au
----- Original Message -----
From: Ignacio Diaz-Emparanza
To: Gretl list
Sent: Tuesday, March 01, 2011 7:40 PM
Subject: Re: [Gretl-users] Box-Pierce Q statistic

El 01/03/11 08:32, Sam Sam escribió:
> Dear all:
>
> The Q statistic to test if the series is white noise in gretl is
> Box-Pierce Q statistic, is it ?

If you are talking about what appears in the ouput text window of the
correlogram. I think although in the help it is said to be the
Box-Pierce Q statistic, really it is the Ljung-Box statistic

If you apply an ols regression to a time series, you may test for
autocorrelation via the "test" menu. In such a case the output text
window shows a Q' estatistic, correctly described as Ljung-Box

> But I can not find its formulation in gretl.
> Is the formulation of Q statistic the same as the reference of Box &
> Pierce (1970) ?

I think gretl is using in both places the Ljung-Box statistic:
(in latex format)

Q'= T(T+2)\sum_{j=1}^M (r_j)^2/(T-j)

being M the number of coeficients you want to test, T the number of
observations and r_j the sample autocorrelation coeficient of order j.
Q' has a chi-square asymptotic distribution with M-p-q degrees of freedom.

It is asymptotically equivalent to the Box-Pierce statistic but has an
smaller bias in small samples. So I think we should always prefer to use
Ljung-Box Q' instead of Box-Pierce Q.


--
Ignacio Diaz-Emparanza
DEPARTAMENTO DE ECONOMÍA APLICADA III (ECONOMETRÍA Y ESTADÍSTICA)
UPV/EHU Avda. Lehendakari Aguirre, 83 | 48015 BILBAO
T.: +34 946013732 | F.: +34 946013754
www.ea3.ehu.es




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