Skip to content

Commit

Permalink
correct equations in readme.md
Browse files Browse the repository at this point in the history
  • Loading branch information
xxl4tomxu98 committed Jul 1, 2021
1 parent b9990c7 commit 71f30b3
Showing 1 changed file with 3 additions and 3 deletions.
6 changes: 3 additions & 3 deletions README.md
Original file line number Diff line number Diff line change
Expand Up @@ -34,7 +34,7 @@ To calculate Y1(t), VAR will use the past values of both Y1 as well as Y2. Likew

For example, the system of equations for a VAR(1) model with two time series (variables `Y1` and `Y2`) is as follows:

https://www.machinelearningplus.com/wp-content/uploads/2019/07/Equation_VAR1_Model-min.png
![VAR(1) Model Equations](https://www.machinelearningplus.com/wp-content/uploads/2019/07/Equation_VAR1_Model-min.png)

Where, Y{1,t-1} and Y{2,t-1} are the first lag of time series Y1 and Y2 respectively.

Expand All @@ -44,11 +44,11 @@ Since the Y terms in the equations are interrelated, the Y’s are considered as

Likewise, the second order VAR(2) model for two variables would include up to two lags for each variable (Y1 and Y2).

https://www.machinelearningplus.com/wp-content/uploads/2019/07/Equation_VAR2_Model-min.png
![VAR(2) Model Equations](https://www.machinelearningplus.com/wp-content/uploads/2019/07/Equation_VAR2_Model-min.png)

Can you imagine what a second order VAR(2) model with three variables (Y1, Y2 and Y3) would look like?

https://www.machinelearningplus.com/wp-content/uploads/2019/07/Equation_VAR2_Model_with_three_Ys-min.png
![VAR(2) Model Three Variables](https://www.machinelearningplus.com/wp-content/uploads/2019/07/Equation_VAR2_Model_with_three_Ys-min.png)

As you increase the number of time series (variables) in the model the system of equations become larger.

Expand Down

0 comments on commit 71f30b3

Please sign in to comment.