On the Variance of Antithetic Time Series

Authors

  • Dennis Ridley Florida State University

Keywords:

Antithetic time series theory, Time Series analysis, Bias reduction, Inverse correlation, Serial correlation, Forecasting

Abstract

Combining antithetic time series is used to reduce model fitted and forecast mean square error (MSE). This is accomplished by removing the component of error that represents bias. The potential to reduce error is a function of variance in the time series. The greater the variance the greater is the potential for error reduction. But, the greater the variance the less is the efficacy of reversing correlation and combining antithetic time series. The percentage reduction in MSE increases with variance up to a limit then reduces.

Author Biography

  • Dennis Ridley, Florida State University

    Department of Scientific Computing

    Professor

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Published

2015-10-28

Issue

Section

Mathematical Statistics

How to Cite

On the Variance of Antithetic Time Series. (2015). European Journal of Pure and Applied Mathematics, 8(4), 431-449. https://www.ejpam.com/index.php/ejpam/article/view/2492