What Does ARMAX Stand For?

ARMAX stands for Autoregressive Moving Average Exogenous

ARMAX, or Autoregressive Moving Average Exogenous, is a statistical modeling approach commonly used in time series analysis. It combines an autoregressive component, which captures the relationship between an observation and a number of lagged observations, with a moving average component that accounts for the influence of past forecast errors. Additionally, the exogenous part allows for the incorporation of external variables that may affect the dependent variable. This comprehensive framework is particularly useful for forecasting and understanding dynamic systems influenced by both historical data and external factors.