Monitoring processes with changing variances

B-Tier
Journal: International Journal of Forecasting
Year: 2009
Volume: 25
Issue: 3
Pages: 518-525

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Statistical process control (SPC) has evolved beyond its classical applications in manufacturing to monitoring economic and social phenomena. This extension has required the consideration of autocorrelated and possibly non-stationary time series. Less attention has been paid to the possibility that the variance of the process may also change over time. In this paper we use the innovations state space modeling framework to develop conditionally heteroscedastic models. We provide examples to show that the incorrect use of homoscedastic models may lead to erroneous decisions about the nature of the process.

Technical Details

RePEc Handle
repec:eee:intfor:v:25:y:2009:i:3:p:518-525
Journal Field
Econometrics
Author Count
4
Added to Database
2026-01-26