I am trying to fit an ARMAX with two exogenous time series with the following code but it gives me an "computationally singular" error. I know it is about defining more than 2 time series for
xreg because when I include only one exogenous it works!
This is link for data
library(forecast) data<-read.csv("DATA.csv") Y1=ts(data[,1], start=1978, frequency=12) #exogenous time series Y2<-matrix(0,360,2) Y2[,1]<-cbind(data[,2]) Y2[,2]<-cbind(data[,3]) model<- arima (Y1, order=c(1, 0, 0), xreg=as.ts(Y2, start=1978, frequency=12)) predict (model, 10, newxreg=0)
I get this Error:
in solve.default(res$hessian * n.used, A) : system is computationally singular: reciprocal condition number = 5.67866e-34