Covariance Parameters

Figure 1. Estimates of covariance parameters for autoregressive covariance model
Estimates of covariance parameters for autoregressive covariance model

Both of the residual covariance parameters are statistically significant. The AR1 diagonal parameter specifies the residual variance for each week. The AR1 rho parameter specifies the residual correlation between two consecutive weeks. A negative rho parameter suggests that higher-than-average spending one week is is associated with lower-than-average spending the next.

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