What Does DARMA Stand For?

DARMA stands for Deterministic Autoregressive Moving Average

DARMA, or Deterministic Autoregressive Moving Average, is a statistical modeling technique used in time series analysis. It combines elements of autoregressive (AR) models, which predict future values based on past observations, with moving average (MA) components that account for random shocks or errors in the data. The deterministic aspect indicates that the model incorporates predefined trend or seasonal components, allowing for more accurate predictions in cases where the underlying processes are influenced by known factors. DARMA is particularly useful in fields such as economics, finance, and environmental forecasting, where understanding and predicting temporal patterns is crucial.