Not following explanation

Generic
1

Course Name: Financial Time Series Analysis for Trading, Section No: 21, Unit No: 1, Unit type: Document

why did they choose the non-relevant legs? i dont understand the explanation provided here

 

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Hello Sebastian,



Thank you for your feedback. We will update the document accordingly.



Thanks.

3

Hi Sebastian,



When we say that the probable seasonal AR order is 3, it means we are checking the number of lags which are significant. (In the plot, it is 4, 8, and 19). Thus, the AR order is 3, the number of lags which are significant and not "the lag" per se.



I hope this helps in the explanation.



Thanks.