Article ID: | iaor20013142 |
Country: | United Kingdom |
Volume: | 28 |
Issue: | 2 |
Start Page Number: | 215 |
End Page Number: | 221 |
Publication Date: | Apr 2000 |
Journal: | OMEGA |
Authors: | Ragsdale Cliff T., Plane Donald R. |
Keywords: | spreadsheets |
Linear regression analysis has long been used to estimate the parameters of various types of times series (TS) models. In some cases, the application of traditional regression-based techniques to TS data does not produce the optimal values of the parameters being estimated. The nonlinear optimization tool (known as Solver) built into today's electronic spreadsheets can alleviate these estimation problems as well as simplify the process of modeling many types of TS problems. This paper presents two examples of TS problems where Solver performs better than regression-based TS techniques. It also encourages educators to reevaluate these and other traditional TS techniques in light of Solver's capabilities.