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Results tagged with outliers
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user 262939
An outlier is an observation that appears to be unusual or not well described relative to a simple characterization of a dataset. A discomfiting possibility is that these data come from a different population than the one intended to be studied.
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What happens when we model outliers as dummy's in a VAR-system?
I am wondering what is going on "under the hood" or intuitively of what the implication of modelling outliers as dummy's in a VAR-model.
To make this question more clear I will provide an example. …
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