Recent content by jamesdvance

  1. J

    MA() part of ARIMA: How do you get error terms?

    I've been through the excellent forecasting book coauthored by Hyndman on otext.org. I'm having trouble understanding the actual algorithm. The MA(x) is supposed to be a moving average of error terms. But where does the error come from? Is it based on the AR(x) term? In that case, what about...