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The residual analysis is performed to check for model adequacy and assumptions.
Thus these parameters can be used to check for model self-consistency, increasing confidence in the derived composition.
In order to check for model adequacy, the VECM is subjected to a number of diagnostic tests, namely the normality, serial correlation, heteroscedasticity (BPG and ARCH) and Ramsey RESET tests to ascertain its statistical adequacy.
Standard diagnostics will be applied to check for model fit.
(3) Verify unitary balance in the model equations, an easy first check for model self-consistency.
We used the likelihood ratio test to check for model fit by dropping insignificant variables first and refit the model until we got the best fit.
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"I don't think BMI is the right measure, because many models I know are size six to eight, and very conscious of their health and fitness," said Nelson, who instead wants a mandatory health check for models every three to six months.
Check for models with a warranty.
Checking for model identifiability has several advantages as outlined in the paper.
4) The fourth step involves checking for model stability and residual analysis to check for normality, autocorrelation and heteroskedasticity of the residual process.
Models were checked for model assumption and fitness.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com