Penalties for Misclassification of a Pure Diagonal Bilinear Process of Order Two as a Moving Average Process of Order Two

O. E. Okereke^1, , I. S. Iwueze² and C. O. Omekara¹

¹Department of Statistics, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria

²Department of Statistics, Federal University of Technology, Owerri, Imo State, Nigeria

Cite this paper

O. E. Okereke, I. S. Iwueze and C. O. Omekara. Penalties for Misclassification of a Pure Diagonal Bilinear Process of Order Two as a Moving Average Process of Order Two. American Journal of Applied Mathematics and Statistics. 2014; 2(1):47-52. doi: 10.12691/AJAMS-2-1-8

Abstract

The penalty function based on misclassification of a pure diagonal bilinear process of order two as a moving process of order two was derived in this study. Computation of penalties using the penalty function revealed that such misclassification increases the error variance. Regression analysis of the penalties on the parameters of the pure diagonal bilinear process suggested a second order polynomial regression model. A test of significance of each of the parameters of the fitted model showed that all the parameter estimates were statistically significant at 5% level of significance. The analysis of variance technique was also used to confirm the adequacy of the fitted model.

Keywords

autocorrelation function, penalty function, pure diagonal bilinear process, moving average process, polynomial regression

Copyright

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